NJ Joins Federal Lawsuit Against Google

Update: This article now includes a comment from the New Jersey attorney general.

NEW JERSEY — New Jersey joined the Justice Department and seven other states in filing an antitrust lawsuit Tuesday against Google's parent company, accusing Alphabet of illegally abusing its power in digital advertising.

The suing parties seek to make Google divest parts of its business. The lawsuit argues that Google sought to illegally control all sides of the advertising market, which includes buying, selling and an ad exchange. Such market control could mean that Google "would no longer have to compete on the merits; it could simply set the rules of the game to exclude rivals," according to the 153-page complaint.

Google faces several antitrust lawsuits, including one the DOJ and several state attorneys general filed in 2020. The 2020 lawsuit, which is ongoing, accuses Google of using alleged monopoly power to cut off competition for internet searches via exclusionary agreements.

Other states joining the latest lawsuit against Google include California, Colorado, Connecticut, New York, Rhode Island, Tennessee and Virginia.

"Big tech companies like Google have grown larger by stomping out competition in their industry to build monopolies over everything from searches to advertising," New Jersey Attorney General Matthew J. Platkin said in a statement. "How they acquire and use their power and influence must be scrutinized. Today’s lawsuit makes clear that no company is too big or powerful to be held accountable for their actions."

Google earned $209 billion in ad revenue in 2021, making it the world's largest advertising company, according to Axios. Eighty-one percent of Google's revenue that year came from advertising, but its ad business took a hit amid economic challenges impacting the growth of the global ad market.

The company will report its full-year earnings next week and expects to bring in more than $200 billion in ad revenue for the full year, Axios reports. Nonetheless, Google laid off 12,000 employees Friday — about 6 percent of its full-time workforce.