A US federal judge has ruled that Google illegally monopolized the online advertising technology market, marking a major legal defeat for the tech giant and a significant win for antitrust regulators.
The decision stems from a lawsuit filed by the US Department of Justice and 17 states, which accused Google of using its dominant position to suppress competition in the ad tech industry. The lawsuit focused on how Google controls both the buying and selling of digital ads and operates the ad exchange that connects the two.
Judge Leonie Brinkema found that Google had “wilfully engaged in a series of anticompetitive acts” to gain and maintain monopoly power, harming publishers, the competitive landscape, and ultimately, internet users. The ruling held Google liable on two counts, with one count dismissed.
Google plans to appeal. “We won half of this case and we will appeal the other half,” said Lee-Ann Mulholland, the company’s head of regulatory affairs. She defended Google’s tools as “simple, affordable, and effective.”
Despite the setback, the court did not find Google’s acquisitions like DoubleClick harmful to competition. But critics say the company’s dominance has disadvantaged premium publishers and stifled innovation.
Digital Content Next CEO Jason Kint said Google’s practices deprived publishers of vital ad revenue. “They’ve used their market power to preference their own products,” he stated.
Legal experts believe the case could reshape tech industry practices. Professor Laura Phillips-Sawyer of the University of Georgia called the verdict “a landmark win” that may encourage further enforcement against Big Tech.
Though consumers may not notice immediate changes online, the court could order structural reforms that affect how Google shares revenue among advertisers, publishers, and platforms. The case now enters a remedies phase, which could potentially lead to the breakup of parts of Alphabet, Google’s parent company.
In a related move, the UK’s competition watchdog has also provisionally found Google guilty of anti-competitive behavior in the online ad tech space.
