Judge Rules Google Illegally Dominates Online Ad Tech Market

A U.S. judge ruled Google illegally dominates online ad tech markets, opening the door for antitrust action that could force a business breakup.

A U.S. judge has ruled that Google broke the law by dominating key parts of the online advertising market, marking a major setback for the tech giant and clearing the way for the government to push for a breakup of its ad business, as first reported by Reuters.

U.S. District Judge Leonie Brinkema ruled that Google was “willfully acquiring and maintaining monopoly power” in two markets: publisher ad servers and ad exchanges. These tools help websites manage and sell ad space, which Brinkema called the “lifeblood” of the internet, reported Reuters.

“In addition to depriving rivals of the ability to compete, this exclusionary conduct substantially harmed Google’s publisher customers, the competitive process, and, ultimately, consumers of information on the open web,” she wrote, as reported by Reuters.

The ruling allows a future hearing to decide how Google must restore competition, possibly by forcing it to sell parts of its advertising arm. This comes after another court previously ruled that Google also holds a monopoly in online search.

The Department of Justice (DOJ) wants Google to sell its Google Ad Manager, which includes both the ad server and ad exchange. Reuters notes that the company had already considered selling its ad exchange to satisfy European regulators.

Reuters reports that U.S. Attorney General Pamela Bondi praised the decision as “a landmark victory in the ongoing fight to stop Google from monopolizing the digital public square.”

“This Department of Justice will continue taking bold legal action to protect the American people from encroachments on free speech and free markets by tech companies,” she added, as reported by Reuters.

Google says it will appeal. “We won half of this case and we will appeal the other half,” said Lee-Anne Mulholland, vice president of regulatory affairs. “Publishers have many options and they choose Google because our ad tech tools are simple, affordable and effective,” he added, as reported by Reuters.

Google shares fell 1.4% after the ruling, though analysts say the financial impact may be limited. Still, Reuters reports that experts like Michael Ashley Schulman of Running Point Capital say this is a “major inflection point,” noting it could lead to tougher regulations for other tech giants like Amazon and Meta.