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U.S. Justice Department Files Second Antitrust Lawsuit Against Google, Escalating Risks for Tech Giant

Image courtesy of media.cnn.com

Key takeaways:

  • The Justice Department and 8 states are accusing Google of harming competition with its dominance in the online advertising market.
  • Google has denied these claims, arguing that its online advertising business is competitive and that it has not harmed competition.
  • The Justice Department’s lawsuit is the first blockbuster antitrust case against a Big Tech company under the Biden administration.

The U.S. Justice Department has filed its second antitrust lawsuit against Google in just over two years, escalating the risks to the tech giant emanating from Washington. The lawsuit, which is focused on Google’s online advertising business and seeks to make Google divest parts of the business, is the first against the company filed under the Biden administration.

The Department and eight states, including California, Colorado, Connecticut, New Jersey, New York, Rhode Island, Tennessee and Virginia, are accusing Google of harming competition with its dominance in the online advertising market and are calling for it to be broken up.

For years, Google’s critics have claimed that the company’s online advertising business is a monopoly, and that it uses its power to stifle competition. Google has denied these claims, arguing that its online advertising business is competitive and that it has not harmed competition.

The lawsuit is the latest sign that the U.S. government is not backing down from cases against tech firms even in light of a mixed record in court on antitrust suits. It is also a sign that lawmakers and regulators have not been able to pass new legislation or regulations that might rein in the company or its peers.

The Justice Department’s lawsuit is the first blockbuster antitrust case against a Big Tech company under the Biden administration. It remains to be seen how the case will play out in court, but it is clear that the U.S. government is taking a hard stance against Google and other tech giants.

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