Google illegally monopolised ad tech market, judge rules
A federal judge has ruled that Google violated United States antitrust laws by “wilfully acquiring and maintaining monopoly power” in the advertising technology (adtech) market, concluding a legal battle that began with a lawsuit filed by the U.S. Department of Justice (DOJ) and eight states in January 2023.
The decision, issued by Judge Leonie M. Brinkema, found that Google unlawfully tied together two parts of its adtech stack, DoubleClick for Publishers (DFP) and AdX, the company’s ad exchange, resulting in abuse of monopoly power on the publisher side of the market.
The ruling paves the way for potential remedies, which could include breaking up Google’s advertising business. The court noted that one possible outcome could be requiring the company to divest Google Ad Manager, which includes DFP and AdX. Alternatively, behavioural remedies might be imposed to regulate how Google operates, such as barring the company from prioritising its own exchange or demand in auctions.
A hearing date and briefing schedule will be set to determine appropriate remedies for the violations.
In her memorandum opinion, Judge Brinkema stated that the plaintiffs failed to demonstrate that “open-web display advertiser ad networks” constitute a relevant market in which Google holds monopoly power. These networks allow advertisers to purchase display ads across the open web, excluding closed platforms such as Facebook, Instagram, and Google Search.
However, the court agreed with the DOJ’s arguments regarding Google’s unlawful conduct in monopolising parts of the adtech ecosystem, particularly in relation to publishers.
“We won half of this case and we will appeal the other half,” said Lee-Anne Mulholland, Google’s vice president of regulatory affairs, in an emailed statement according to Tech Crunch. “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 DOJ’s complaint alleged that Google built and maintained its adtech dominance through anti-competitive behaviour, beginning with its 2008 acquisition of DoubleClick, followed by the 2011 purchase of AdMeld to gain further control over the supply side of the ad market. Prosecutors argued that these acquisitions enabled Google to raise ad prices and extract larger commissions, thereby harming publishers.
The case was tried in September 2024 over a three-week period, with closing arguments presented in late November.
In a separate antitrust case, a different federal judge previously ruled that Google illegally monopolised the general internet search market. Remedies in that case have not yet been issued but are expected by mid-2025.
The adtech ruling marks a significant moment in U.S. antitrust enforcement against dominant tech firms and may lead to major structural changes in Google’s advertising operations.
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