Google has illegal monopoly in online advertising, US judge rules

A US federal judge has ruled that Google violated antitrust laws by maintaining an illegal monopoly in the online advertising market, handing a major victory to the US government in its years-long legal battle against the tech giant.

The decision, issued by Judge Leonie Brinkema in Virginia, found that Google had “wilfully engaged in a series of anticompetitive acts” which enabled it to “acquire and maintain monopoly power” in the market.

“This exclusionary conduct substantially harmed Google’s publisher customers, the competitive process, and, ultimately, consumers of information on the open web,” Judge Brinkema continued.

Google has denied wrongdoing, stating that its advertising tools benefit businesses and that the market remains competitive.

“Publishers have many options and they choose Google because our ad tech tools are simple, affordable and effective,” said Lee-Ann Mulholland, Google’s Vice President and Global Head of Regulatory Affairs.

“We won half of this case and we will appeal the other half,” Mulholland confirmed.

The case is part of a broader regulatory push to rein in Big Tech’s power. The US government, along with regulators in Europe, has increasingly targeted companies like Google, Amazon, and Meta over concerns about monopolistic practices.

Legal experts say the ruling could have far-reaching consequences. “If upheld, this decision could force Google to change its business practices or even divest parts of its ad tech operations,” said Eleanor Fox, an antitrust scholar at New York University.

The next phase of the case will focus on potential remedies, which could include structural changes to Google’s advertising business. For now, the ruling stands as a significant legal setback for the company, which controls a large portion of the $600+ billion global digital ad market.

Google’s appeal is expected to prolong the case for months or even years, leaving the future of online advertising regulation uncertain.