A United States judge has ruled that Google has illegally dominated two key markets in online advertising technology. This decision is a significant setback for the tech giant in an ongoing antitrust case initiated by the US government.
On Thursday, US District Judge Leonie Brinkema, based in Alexandria, Virginia, determined that Google unlawfully monopolized the markets for publisher ad servers and ad exchanges, which facilitate transactions between buyers and sellers. However, she noted that the government did not provide enough evidence to prove that Google held a monopoly in advertiser ad networks.
This ruling opens the door for the Department of Justice (DOJ) to push for a breakup of Google’s advertising products. The DOJ has suggested that Google should sell off its Google Ad Manager, which encompasses both its publisher ad server and ad exchange.
The implications of this ruling could be far-reaching. Google now faces the possibility of being ordered by two different US courts to divest assets or change its business practices. A separate trial is scheduled next week in Washington, where the DOJ will argue for Google to sell its Chrome browser to address concerns about its dominance in online search.
In the past, Google has considered selling parts of its ad business to satisfy European antitrust regulators. Judge Brinkema’s ruling follows a three-week trial last year involving claims from the DOJ and a coalition of states. Prosecutors argued that Google used typical monopoly tactics, such as acquiring competitors, locking customers into its ecosystem, and controlling transactions in the online advertising market.
Google’s defense claimed that the case focused too much on the past and argued that it was working to improve compatibility with competitors’ products. They also pointed to competition from other tech companies like Amazon and Comcast as the digital advertising landscape evolves.
This ruling comes at a time when other tech giants, including Meta, the parent company of Facebook and Instagram, are also facing scrutiny over monopolistic practices. As the landscape of online advertising continues to shift, the outcomes of these cases could reshape the industry significantly.