A U.S. federal judge has ruled that Google illegally maintains monopoly power in two key sectors of online advertising technology: publisher ad servers and ad exchanges.
In 2024, Google earned $264.59 billion in advertising revenue, making up a major share of its total revenue of $348.16 billion. Most of the ad revenue came from Google’s own platforms like Search and YouTube, which brought in $234.23 billion, while network sites added another $30.36 billion.
The decision, issued by Judge Leonie Brinkema in Virginia, marks a major setback for the tech giant and could lead to a court-ordered breakup of parts of its ad business. This is the second ruling against Google for monopoly behavior, following an earlier case involving its dominance in online search. The Department of Justice (DOJ) has pushed for Google to divest at least its Google Ad Manager platform, which encompasses the ad server and ad exchange technologies central to this case.
Google’s exclusionary tactics
Judge Leonie Brinkema stated that Google’s exclusionary tactics have harmed rivals, publishers, and consumers alike by limiting competition and distorting the open web’s economic foundation. While the court dismissed claims that Google monopolized advertiser ad networks, the ruling confirms that Google’s practices have damaged the competitive process. Google responded by stating it will appeal the decision, arguing that publishers still have choices and that its ad tools remain effective and affordable.
The ruling arrives amid heightened scrutiny of major tech companies, Reuters news report said. Google now faces the possibility of multiple U.S. courts demanding structural changes to its business, including a separate trial next week that could lead to the forced sale of its Chrome browser.
The DOJ and state attorneys argued during a previous trial that Google built its dominance through acquisitions, restrictive contracts, and tight control over how ads are bought and sold. Google, for its part, claimed that the case focused on outdated practices and failed to acknowledge competition from Amazon, Comcast, and newer digital ad platforms.
U.S. Senator Amy Klobuchar praised the ruling as a win for consumers and small businesses, suggesting it could pave the way for more open and competitive digital markets. Industry analysts have called this a critical moment for tech regulation, potentially increasing scrutiny on other firms like Amazon, Meta, and Apple, which are also facing antitrust lawsuits.
Google’s market strategy
Google’s share price dipped 1.6 percent after the ruling, though analysts believe the immediate financial impact will be limited.
This ruling exposes the darker side of Google’s market strategy, where it has been found guilty of willfully maintaining monopoly power in both publisher ad servers and ad exchanges. Such dominance has not only crippled competition but also hurt publishers and, by extension, the broader ecosystem of online information.
Despite Google’s defense that its tools are “simple, affordable and effective,” the ruling highlights a pattern of exclusionary conduct that has deprived rivals of any real chance to compete and harmed the very customers it claims to serve.
Rather than fostering innovation, Google’s grip on the ad tech space has allowed it to entrench itself at the expense of others — locking in clients, eliminating competition through acquisitions, and dictating how online ad transactions are carried out. These practices have led to inflated prices and reduced transparency in a system that underpins much of the modern web.
While Google has tried to downplay the impact of this decision and has vowed to appeal, the court’s findings mark a pivotal moment, not just for Google, but for the wider tech industry. This is not an isolated incident, either — it adds to a growing list of antitrust actions against major tech firms, further exposing how deeply entrenched monopolistic behavior has become in the digital economy.
Baburajan Kizhakedath
