A US federal judge has made a groundbreaking ruling against Google, stating that the tech giant illegally obtained and maintained a monopoly in the digital advertising space. This marks another significant antitrust setback for Google, potentially leading to the company having to divest certain parts of its business.
Leonie Brinkema, the district judge overseeing the case in Virginia, concluded that Google had deliberately monopolized two key areas of the digital advertising market: the technology used by online publishers to sell ad space and the primary exchange where businesses bid on ads.
However, Brinkema did not find sufficient evidence to support the claim that Google unfairly dominated the third component of the market, advertiser ad networks.
This ruling follows a prior antitrust case where a federal judge determined that Google had spent significant amounts on exclusive deals to maintain an illegal monopoly in search. The upcoming phase of that trial will focus on potential remedies, including the possibility of Google divesting parts of its business.
In the search case, the Department of Justice requested that Google sell its Chrome browser, stop the annual $20 billion payments to Apple to maintain its default search engine status, and provide more data to competitors.
Brinkema’s ruling highlighted Google’s actions over the past decade, emphasizing how the company intertwined its publisher ad server and ad exchange to solidify its monopoly power through contractual and technological means.
Google responded by stating that they plan to appeal the ruling regarding publisher tools, emphasizing that publishers choose Google due to the simplicity, affordability, and effectiveness of their ad tech tools.
This verdict represents a win for antitrust officials appointed during the Biden administration, signaling a tougher stance on enforcement, particularly against major tech companies like Google. The FTC has also initiated a monopoly trial against Meta in Washington federal court.
US attorney-general Pam Bondi hailed the ruling as a significant victory in the battle to prevent Google from monopolizing the digital landscape. The Department of Justice remains committed to taking legal action to safeguard free speech and fair markets from tech giants.
Meanwhile, the EU’s competition chief, Teresa Ribera, expressed interest in the ruling and confirmed that the European Commission’s investigation into Google’s alleged favoritism towards its advertising services continues.
