Judge Rules Google Illegally Monopolized Online Ad Tech Markets
A federal judge has ruled that Google illegally dominated two key markets in the online advertising technology sector, intensifying the U.S. government’s efforts to rein in the tech giant. The ruling could lead to a forced breakup of parts of Google’s advertising business.
U.S. District Judge Leonie Brinkema in Alexandria, Virginia, found that Google willfully maintained monopoly power in the markets for publisher ad servers and ad exchanges—platforms that help websites manage ads and serve as intermediaries between ad buyers and sellers. However, the court dismissed a separate claim that Google held a monopoly in advertiser ad networks.
“This decision sets the stage for potential structural remedies, including the sale of major parts of Google’s ad tech operations,” said legal experts, pointing to a yet-unscheduled hearing where remedies will be discussed.
The Justice Department has previously argued that Google should be required to divest Google Ad Manager, which includes both its publisher ad server and ad exchange.
In response, Google announced plans to appeal. “We won half of this case and will appeal the other half,” said Lee-Anne Mulholland, vice president of regulatory affairs. “We disagree with the ruling regarding our publisher tools. Publishers have many choices and select Google because our tools are effective and affordable.”
The ruling adds to mounting legal pressure on the company. Google is also preparing for another antitrust trial next week in Washington, where the Justice Department is seeking remedies that include the divestiture of the Chrome browser and further steps to curb its dominance in search.
Last year’s trial, led by the DOJ and a coalition of states, accused Google of using anticompetitive tactics—such as acquisitions, restrictive contracts, and market manipulation—to build and preserve its dominance in digital advertising.
Google countered that prosecutors overlooked increasing competition from companies like Amazon and Comcast and failed to consider changes in digital ad spending trends toward mobile apps and streaming platforms.