A US court has concluded that Google’s control over two segments of the online advertising technology market is unlawful, advancing efforts by antitrust authorities to potentially dismantle parts of its advertising operations. Judge Leonie Brinkema of the US District Court in Virginia determined that Google unlawfully acquired and maintained monopoly power in the sectors of publisher ad servers and ad exchanges, which facilitate transactions between buyers and sellers of online advertisements.
This decision sets the stage for a future hearing to decide on measures Google must take to reintroduce competition, which might include divesting certain business units, though a date for this proceeding has not been set.
Court finds Google’s publisher tools harm competition, but clears advertiser networks
Publisher ad servers are systems allowing websites to organise their digital ad space. Alongside ad exchanges, these systems enable online publishers to earn revenue through ad sales, which Judge Brinkema described as essential for the internet’s financial ecosystem.
“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,” wrote Brinkema.
However, the court found insufficient evidence to support claims that Google monopolised advertiser ad networks.
“This is a landmark victory in the ongoing fight to stop Google from monopolising the digital public square,” said Attorney General Pamela Bondi. “This Department of Justice will continue taking bold legal action to protect the American people from encroachments on free speech and free markets by tech companies.”
“We won half of this case and we will appeal the other half,” said Google regulatory affairs vice president Lee-Anne Mulholland. “The Court found that our advertiser tools and our acquisitions, such as DoubleClick, don’t harm competition. We disagree with the Court’s decision regarding our publisher tools. Publishers have many options and they choose Google because our ad tech tools are simple, affordable and effective.”
The ruling comes after a 15-day trial in September 2024 at the US District Court for the Eastern District of Virginia. The case originated from a civil antitrust lawsuit filed in January 2023 by the Justice Department and several state Attorneys General, including Virginia. The lawsuit accused Google of monopolising critical digital advertising technologies, known as the “ad tech stack,” which are vital for website publishers to conduct ad transactions.
Simultaneously, Google is facing a £5bn lawsuit in the UK concerning alleged abuses in the online search market. The class action, led by Dr Or Brook and filed at the Competition Appeal Tribunal, includes a legal team from Geradin Partners and specialists in competition litigation.
The lawsuit claims Google pressured mobile phone manufacturers and network operators to pre-install Google Search and Chrome on Android devices and paid Apple to ensure Google remains the default search engine on Safari.
Read more: Google faces £5bn UK lawsuit over search market dominance
