In this article, we’ll examine the reasons behind Alphabet’s request for dismissal of the US antitrust lawsuit regarding Google’s online advertising practices and the implications for the tech industry.
Key Takeaways:
- Alphabet seeks dismissal of the US antitrust lawsuit filed by the Justice Department
- Google denies allegations and requests a hearing to consider the motion to dismiss
- The company argues that the government’s definition of the online advertising market is flawed
- Google contends that its acquisitions of DoubleClick and AdMeld did not hurt competition
- This lawsuit follows a separate antitrust case filed against Google in 2020
Alphabet Fights Back Against Antitrust Allegations
Alphabet, Google’s parent company, has urged a US federal judge to dismiss a lawsuit brought forth by the Justice Department, which accuses the search giant of illegally exploiting its dominance in the online advertising sector.
According to the government, Google should be compelled to sell its ad management suite, an assertion that Google has vehemently denied.
A Flawed Definition of the Online Advertising Market
In its defense, Google claims that the government’s definition of the online advertising market is inaccurate and unfairly excludes powerful competitors like Facebook.
The company further argues that the government’s estimation of Google’s ad exchange holding “more than 50%” of the market falls short of the 70% required to assert market power.
The Impact of DoubleClick and AdMeld Acquisitions
Google disputes the government’s claim that its acquisitions of DoubleClick and AdMeld over a decade ago negatively impacted competition.
Notably, antitrust enforcers had approved both transactions when they occurred.
The Legal Battle Unfolds
US Judge Leonie Brinkema of the Eastern District of Virginia is presiding over the case.
This lawsuit comes after a separate antitrust suit filed against Google in 2020, which accuses the company of violating antitrust law to maintain its dominance in search.
The trial for that case is set for September.
Biden Administration Tightens Antitrust Enforcement
The Biden administration has been working to strengthen antitrust enforcement and has a long list of merger challenges on its agenda.
This development indicates an increasingly stringent regulatory environment for tech giants like Google.
Conclusion
As Alphabet seeks dismissal of the antitrust lawsuit over Google’s online advertising practices, the outcome of this case and the separate 2020 lawsuit will significantly impact the tech industry and antitrust enforcement.
With the Biden administration focusing on tightening antitrust regulations, tech companies may face increased scrutiny and a more challenging business landscape in the coming years.
