🔴 LIVE: The Secrets of ProPicks AI Success Revealed + November’s List FREEWatch Now

U.S. Justice Department's Google lawsuit expected in weeks ahead: sources

Published 2020-09-03, 09:29 p/m
© Reuters. FILE PHOTO: A Google logo is shown at one of the company's office complexes in Irvine, California
GOOGL
-
AMZN
-
META
-
GOOG
-

WASHINGTON (Reuters) - The Justice Department, which has been conducting an antitrust investigation of Alphabet (NASDAQ:GOOGL) Inc's Google, plans to bring a lawsuit against Google as soon as this month, according to two sources familiar with the probe, who said the focus remains on search and advertising.

Deputy Attorney General Jeff Rosen told Reuters last month that the Justice Department was moving "full tilt" on a probe of Google and other Big Tech platforms.

A complaint, which had been expected around Labor Day, is now expected this month but potentially as late as mid-October, and is likely to focus on two sets of allegations, the sources said.

A person briefed on the matter confirmed that some career Justice Department attorneys have pushed to delay filing of a case pending further work, while Attorney General William Barr has pressed to move faster.

Barr told the Wall Street Journal last month that he was "hoping to make a decision by the end of the summer" on the Google probe.

The department is focusing on allegations that Google violates antitrust law by favoring its own businesses, for example YouTube, in search results rather than presenting neutral search results, the sources said.

A Federal Trade Commission (FTC) probe of Google that included this allegation and wrapped up in 2013 found no justification to take action on it.

Since then, the European Union has fined Google $2.6 billion for favoring its own price-comparison shopping service over smaller European rivals.

Executives knowledgeable about the advertising industry have alleged that Google abuses its dominance in display search advertising by requiring companies that want to use Google's popular ad exchange to also use Google Ad Manager to serve their ads. This has pushed several ad tech companies to switch to other businesses.

"While we continue to engage with ongoing investigations, our focus is firmly on providing free services that help people every day, lower costs for small businesses, and enable increased choice and competition," Google spokesperson Jose Castaneda said.

The Justice Department had no immediate comment.

A lawsuit would be the next big step in an investigation that the Justice Department said in July 2019 it opened to determine whether major technology firms engage in anticompetitive practices. The FTC is probing Facebook Inc (NASDAQ:FB) and Amazon.com Inc (NASDAQ:AMZN).

Parallel to the Justice Department, a large group of state attorneys general are probing Google and holding regular meetings with federal law enforcers. At least 12 of these will likely sign on to the Justice Department lawsuit, and perhaps many more, one of the sources said.

© Reuters. FILE PHOTO: A Google logo is shown at one of the company's office complexes in Irvine, California

There is some concern among Democratic state attorneys general that the federal government will move too fast and file a lawsuit that needs more work, the second source said. A third source agreed.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.