Alphabet Inc.’s Google has been found to have illegally dominated two key markets in the online advertising technology space, marking a major win for U.S. antitrust prosecutors and raising the prospect of a potential breakup of its ad tech business.
The ruling, issued by U.S. District Judge Leonie Brinkema in Alexandria, Virginia, determined that Google willfully acquired and maintained monopoly power in the markets for publisher ad servers and ad exchanges, which connect advertisers with websites that host digital ads.
The decision paves the way for a future hearing to determine remedies that could include requiring Google to divest parts of its advertising operations. The Department of Justice (DOJ) has already proposed that Google sell off its Google Ad Manager unit, which includes both the ad server and ad exchange components at the heart of the case.
This is the second ruling that finds Google holds an illegal monopoly, following a similar outcome in a case related to its search engine dominance.
Judge Brinkema emphasized the broader impact of Google’s conduct, noting that it not only harmed competition but also hurt Google’s publisher clients and ultimately the consumers who rely on the open internet for information. “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.
However, the court did not find Google liable for monopolizing the advertiser ad networks market, dismissing that specific claim by the DOJ. The mixed ruling prompted U.S. Attorney General Pamela Bondi to describe the outcome as a “landmark victory” in the government’s efforts to address anti-competitive behavior in the tech industry.
She added that the DOJ would continue pursuing legal measures to preserve free markets and protect public access to information online.
Google’s Vice President of Regulatory Affairs, Lee-Anne Mulholland, said the company intends to appeal the ruling. “We won half of this case and we will appeal the other half,” she stated. “Publishers have many options, and they choose Google because our ad tech tools are simple, affordable, and effective.”
Following the ruling, Alphabet shares fell 1.4%. Despite the legal setback, analysts suggest that any near-term financial impact to Google’s overall business is expected to be limited. Nonetheless, the ruling signals growing regulatory pressure on the company’s advertising dominance and a heightened risk of structural changes to its business model.
