Judge Declares Google’s Ad Business an Illegal Monopoly

Google has been declared an illegal monopolist for the second time in less than a year. In a landmark case, a Virginia federal judge ruled that the company has unlawfully exploited its marketing technology to increase its online ad business profits.

The case focused on Google’s ad business, which connects website publishers with advertisers. Its $31 billion “stack” of technologies determines which ads will appear on websites across the internet.

Judge Leonie Brinkema found that Google illegally dominated publisher ad servers and ad exchanges, harming competition and limiting choices for web publishers and consumers. Her decision – that Google managed to “establish and protect its monopoly power in these two markets” – aligns with the US Department of Justice’s (DOJ) criticism of Google’s extensive role in the digital advertising space.

The ruling stems from a lawsuit filed by the DOJ and 17 states. It alleged that Google used anticompetitive tactics and acquisitions to control the digital ad market. While the court found Google monopolized certain areas of its ad business, it didn’t conclude that its acquisitions of DoubleClick and Admeld were inherently illegal.

“We won half of this case and we will appeal the other half,” Google’s Vice President of Regulatory Affairs Lee-Anne Mulholland said in a statement regarding the ruling.

“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 DOJ has proposed remedies such as breaking up Google’s ad businesses, a scenario experts argue is unlikely, given the mixed verdict. Still, Google could face restrictions on how it operates and prices its ad services.

Google has a history of getting in legal trouble over its advertising practices. Recently, the company agreed to a $100 million settlement to resolve a 14 year old class-action lawsuit related to charging advertisers for ad clicks outside their targeted geographic areas.

This latest decision marks the third time Google has been declared a monopolist in a US court. In December 2023, a federal jury found that the company’s app store, the Play Store, is also an illegal monopoly.