In a major setback for Google’s advertising business, a U.S. federal judge has ruled that the tech giant illegally monopolised parts of the online advertising technology market, stifling competition and harming publishers and consumers. The decision came in a case brought by the U.S. Department of Justice and several states, and it marks a significant development in the government’s wider effort to rein in Big Tech. U.S. District Judge Leonie Brinkema found that Google violated antitrust laws in two key segments: ad exchanges and publisher ad servers.
These are crucial tools that help websites auction off advertising space. However, she ruled that Google did not monopolise a third area involving advertiser tools used to purchase display ads.
Google’s Tactics Under Scrutiny
The 115-page ruling outlines how Google used its market dominance to tie its ad exchange and publisher server products, thereby blocking rivals and locking in customers. Judge Brinkema said the company “willfully engaged in a series of anticompetitive acts” to maintain monopoly power, including removing features that might benefit competitors and imposing restrictive policies.
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The judge noted that these practices hurt smaller ad tech competitors, limited innovation, and ultimately disadvantaged both publishers and internet users.
Looming Remedies and Market Impact
This is Google’s second antitrust loss in quick succession. In a separate case concerning its dominance in the search engine market, the court is scheduled to begin hearings next week that may result in structural remedies—potentially even breaking off parts of the company, such as its Chrome browser business.
Following the ruling, Alphabet Inc. shares dropped by 3.2%, reflecting investor concern about the implications. Meanwhile, shares of ad tech rival Trade Desk rose by almost 8%, signaling expectations of a more competitive ad market ahead.
Google has yet to issue an official response to the ruling.
