In yet another blow to Google’s empire, a federal judge has ruled that the tech giant illegally monopolized key markets in the online advertising technology industry.
The ruling, handed down by US District Judge Leonie Brinkema, found Google liable for violating antitrust laws by engaging in anticompetitive practices that “substantially harmed” both publishers and users across the web.
The court determined that Google “willfully engaged in a series of anticompetitive acts” specifically to establish and maintain monopoly power in two crucial markets: publisher ad servers and ad exchanges for open-web display advertising.
Judge Brinkema found that for over a decade, Google strategically tied these products together “through contractual policies and technological integration” to cement its dominance.
However, it wasn’t a complete loss for Google. The court dismissed the government’s claim that Google operated a monopoly in ad networks, which represents a partial victory for the company.
Google’s vice president of regulatory affairs, Lee-Anne Mulholland, framed the decision as a split result, stating, “We won half of this case and we will appeal the other half.” The company maintains that publishers choose Google’s ad tech tools because they are “simple, affordable and effective,” not due to lack of alternatives.
However, Judge Brinkema also called out the company for failing to preserve internal communications. The ruling mentioned an internal messaging app that “deleted records of chats between employees” discussing topics relevant to the litigation.
While noting this behavior “may well be sanctionable,” the judge decided against penalties as there was sufficient evidence to make a determination without these materials.
This case could have massive implications for Google’s $95 billion advertising business. The Department of Justice is seeking considerable remedies, including:
- Monetary damages
- Injunctions against anticompetitive behavior
- Potential divestiture of Google’s publisher ad server and ad exchange products
This ruling comes as Google is already facing potential forced separation from its Chrome browser in the separate search monopoly case. Together, these cases are the most significant threats to Google’s business model since the company’s founding.
For publishers and advertisers who have long complained about Google’s outsized influence on the digital ad ecosystem, this ruling validates concerns about the company’s market power.
Although Google argues that breaking up its ad tech business would hurt publishers by forcing them to use more expensive alternatives, critics maintain that true market competition would benefit the entire industry.
