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Google has illegal monopoly in ad tech, US judge rules

Author
AFP,
Publish Date
Fri, 18 Apr 2025, 1:48pm

Google has illegal monopoly in ad tech, US judge rules

Author
AFP,
Publish Date
Fri, 18 Apr 2025, 1:48pm

A US judge on Thursday ruled that  in the online ad technology market, in a legal blow that could rattle the tech giant鈥檚 revenue engine.

The federal government and more than a dozen US states filed the antitrust suit against , accusing it of acting illegally to dominate three sectors of digital advertising - publisher ad servers, advertiser tools, and ad exchanges.

鈥淕oogle鈥檚 monopolies allow it to soak up excessive profits, leaving less for the workers and businesses whose ,鈥 said New York attorney general Letitia James, whose state took part in the suit.

鈥淓veryone from major news organisations to small independent bloggers has taken a financial hit because of Google鈥檚 conduct.鈥

It is one of two federal suits targeting Google that could ultimately see the company split up and curb its influence - and part of a wider government push to rein in Big Tech.

The vast majority of websites use Google ad software products that, combined, leave no way for publishers to escape , the plaintiffs alleged.

District Court Judge Leonie Brinkema agreed with most of that reasoning, ruling that Google built an illegal monopoly over ad software and tools used by publishers, but partially dismissed the argument related to tools used by advertisers.

鈥淕oogle has willfully engaged in a series of  to acquire and maintain monopoly power in the publisher ad server and ad exchange markets for open-web display advertising,鈥 Brinkema said in her ruling.

The judge concluded that Google further entrenched its monopoly power with anticompetitive customer policies and by eliminating desirable product features.

鈥淚n addition to depriving rivals of the ability to compete, this exclusionary conduct substantially harmed Google鈥檚 publisher customers, the competitive process, and, ultimately, consumers of information on the open web,鈥 Brinkema wrote.

 quickly vowed to appeal the ruling.

鈥淲e won half of this case and we will appeal the other half,鈥 the company鈥檚 vice president of regulatory affairs, Lee-Anne Mulholland, said in a statement.

鈥淭he court found that our advertiser tools and our acquisitions, such as DoubleClick, don鈥檛 harm competition,鈥 Mulholland said.

For Emarketer senior analyst Evelyn Mitchell-Wolf, 鈥淭he bigger picture is crystal clear: the antitrust tides have turned against Google and other digital advertising giants.

鈥淭he extent of the fallout will depend on the legal remedies employed,鈥 Mitchell-Wolf told AFP.

What to do?

Launched under the presidential administrations of  and , five major antitrust cases from the Federal Trade Commission and the US Justice Department are proceeding against major US technology companies.

These cases represent an aggressive shift in antitrust enforcement, after a relatively quiet period in antitrust prosecution since the  in the late 1990s.

In August last year, a US judge ruled that Google maintained a monopoly with its dominant search engine. The company has appealed that ruling as well.

Online advertising is the driving engine of Google鈥檚 fortune and pays for  such as Maps, Gmail, and search offered free.

Money pouring into Google鈥檚 coffers also allows the Silicon Valley company to spend billions of dollars on its artificial intelligence efforts, as it tries to keep up with rivals.

Brinkema gave attorneys on both sides of the online ad tech case seven days to submit a schedule for arguing their positions regarding what remedies should be imposed on Google.

Ordering Google to spin off its ad publisher and exchange operations is likely to be among the plaintiffs鈥 proposals.

For Mitchell-Wolf, the ruling has 鈥減rofound implications for the advertising industry鈥.

鈥淭he open web is so deeply rooted in Google鈥檚 advertising technology that any change to the status quo could crush vulnerable publishers,鈥 the analyst said.

Nicole Gill, co-founder of advocacy group Accountable Tech, called Brinkema鈥檚 decision a 鈥渕assive victory鈥, while Amnesty International Secretary-General Agnes Callamard called for a 鈥渞ights-respecting structural break-up of Google鈥.

-Agence France-Presse

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