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Google’s parent Alphabet has requested the Virginia federal court to dismiss the lawsuit filed by the Justice Department.
The lawsuit claims that Google indulges in anti-competitive practices in its online advertising business.
Google has denied the allegations and said whatever business decisions it took were ‘lawful choices.’
Google faces similar accusations from Texas and other states and is set to face a trial for the same in March 2025.
On Friday (April 26), Google’s parent company Alphabet Inc. filed a motion with a federal court in Virginia requesting it to dismiss the antitrust lawsuit brought against it by the Justice Department.
The lawsuit was filed in 2023 and it accuses Google of anticompetitive practices (which means the company is abusing its dominance) in the online advertising industry. The lawsuit also compels Google to sell off its ad manager suite.
The problem is that Google’s advertising network (and its ad manager) is its biggest source of revenue. In 2021, for example, it brought in more than 50% of the company’s revenue. Naturally, the tech giant is reluctant to compromise with its advertising practices.
In response, Google said that the Justice Department’s case goes beyond the scope of the antitrust law and its failing to regulate the actual conduct in question.
It’s also confident that the entire case is baseless because the practices that are being questioned are actually ‘lawful choices’ that the company is allowed to make. This includes decisions pertaining to who it does business with and how it improves its products to benefit its customers.
The Justice Department has declined to comment on Google’s ask for the case’s dismissal.
What Happens Now?
The trial for the case filed by the Justice Department has been scheduled for September by U.S. District Judge Leonie Brinkema in Virginia federal court.
There’s still time until the trial is upon us, meaning the judge will have ample time to either completely dismiss the case or at least narrow down its scope.
Not only that, but both parties will also have the option to seek summary judgments – a type of judgment that’s announced without a full trial to save time and expenses.
Other Google Legal Matters
The US Justice Department isn’t the only one unhappy with how Google works. The tech company is also facing a separate trial in a Texas federal court where Texas and other states have accused the company of abusing its dominance in the online ads business.
Google has earlier said that if the lawsuit doesn’t go in its favor, it will “slow innovation, raise advertising fees, and make it harder for thousands of small businesses and publishers to grow.”
What’s more, a few months ago, Google was also accused of negotiating anti-competitive contracts with phone manufacturers and network providers (with a cumulative value of more than $10 billion) so that they give more preference to Google’s search engine.
To know the full story, read my in-depth coverage of Google’s landmark antitrust trial over search dominance.
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