Google risks losing the ability to publish ads on its platforms

Alphabet, the holding company that owns Google, has been sued by its investors. They claim that the company is a monopolist in the online advertising market, and the investigation initiated by the US Department of Justice in this regard has already led to «significant losses and damages.» The lawsuit may become a class action.

If the lawsuit is granted class action status, the plaintiffs will be all those who bought Alphabet shares between February 4, 2020 and January 23, 2023 — the day before the US Department of Justice announced the opening of an antitrust investigation into Google’s actions and filed a lawsuit.

The department believes that Google deliberately monopolized the digital advertising market by absorbing competitors and forcing advertisers to use the company’s tools. If the court decides that Google’s management violated the law, the company may be forced to sell Ad Manager and other advertising tools to restore a competitive environment in the market.

Earlier, we reported that Google reported a sharp drop in its revenues, blaming it on the bear market. According to the financial report for the third quarter of 2022, the tech giant’s advertising revenue fell by $ 1.3 billion. «In the third quarter, we saw a decline in spending by some advertisers in certain search areas. For example, in insurance, loans, mortgages, and especially in cryptocurrencies,» said Google Chief Business Officer Philip Schindler.