Google's powerful grip on the digital advertising landscape has been dealt a significant blow. In a decisive ruling issued today, April 17th, a US federal judge concluded that the tech giant illegally monopolized two crucial sectors of the online advertising market, escalating the high-stakes antitrust battle against Big Tech in the United States.
US District Judge Leonie Brinkema delivered a verdict finding Google guilty of unlawfully dominating the markets for publisher ad servers and ad exchanges – the essential platforms that facilitate the buying and selling of online advertisements between publishers and advertisers. However, the judge stated that prosecutors did not successfully demonstrate that Google held monopoly power within advertiser ad networks.
This ruling, stemming from a three-week trial held in Alexandria, Virginia, brings Google closer to a potential forced dismantling of its highly profitable advertising technology empire. The US Department of Justice (DOJ) has previously argued that Google should be compelled to divest at least its Google Ad Manager, which encompasses both its ad exchange and publisher ad server.
Now, Google faces the potential scenario of two separate court orders demanding significant structural alterations to its business. A distinct trial is scheduled to commence next week in Washington D.C., where the DOJ is seeking to force Google to sell its widely used Chrome browser and curtail its commanding influence over online search.
Judge Brinkema's ruling now paves the way for a subsequent legal phase aimed at determining the appropriate remedies to restore competition within the illegally dominated markets. These remedies could potentially include the forced sale of key assets. A date for this crucial hearing has not yet been set.
During the trial, prosecutors presented evidence detailing how Google allegedly solidified its market dominance through classic monopolistic practices. These included acquiring competitors, locking in clients through various means, and exerting significant control over the flow of online advertising transactions. It was even revealed that Google had previously considered selling off its ad exchange operations in Europe to address separate antitrust concerns raised in that region, as reported by Reuters last year.
