Google faces US legal blow over online advertising monopoly

A U.S. federal judge has ruled that Google unlawfully monopolized the online advertising market, stating the tech giant deliberately engaged in anti-competitive practices that significantly harmed its clients. While the judge acknowledged that acquisitions like DoubleClick were not inherently illegal, she concluded that Google's subsequent use of those technologies violated antitrust laws.

Google intends to appeal the ruling, which could potentially reach the Supreme Court. According to Lee-Anne Mulholland, a Google vice president, the court sided with the company on part of the case, and they plan to challenge the remaining unfavorable decision.

Industry experts suggest the outcome may take years to finalize if appeals proceed, but the broader trend signals growing antitrust pressure against Google and other digital advertising giants. This decision follows an earlier 2024 ruling in which Google was found guilty of abusing its dominance in the internet search market, where regulators are pushing for the company to divest its Chrome browser.

In this advertising case, brought forward in January 2023 by the Biden administration, the U.S. government demanded Google divest certain assets. The trial, which took place without a jury in September, concluded with Judge Leonie Brinkema finding that Google had built and maintained monopoly power through contractual and technological integration between its ad server and ad exchange platforms.

The judge emphasized the substantial harm done to customers and the competitive barriers imposed on rivals. She has requested both parties to submit a proposed schedule within a week to determine appropriate remedies, with sentencing to follow. However, the final outcome may depend on political changes, as former President Donald Trump has expressed opposition to breaking up Google, citing national interests.

Alphabet, Google's parent company, saw a slight dip in its stock following the ruling. Prosecutors had accused Google of controlling key software in the web advertising space, enabling it to inflate prices and restrict fair revenue sharing. The Justice Department argued Google held a "triple monopoly" over essential ad tools, while the defense contended the case relied on an outdated view of the internet, neglecting the current role of mobile apps and social media advertising.

After years of scrutiny over tech monopolies, Google is the first to face potentially serious legal consequences. A separate case regarding search engine practices is also ongoing, and authorities are calling for stricter restrictions, including bans on default search engine deals with smartphone makers. Meanwhile, Meta is now facing trial over its past acquisitions of Instagram and WhatsApp, accused of eliminating future competition.