US Judge Rules Google Must Sell Publisher Ad Tools Due to Monopoly
A US District Judge has ruled that Alphabet’s Google has illegally dominated two markets for online advertising technology, dealing another blow to the tech giant. The decision, made by Judge Leonie Brinkema in Alexandria, Virginia, found Google liable for “willfully acquiring and maintaining monopoly power” in markets for publisher ad servers and ad exchanges.
The ruling paves the way for US antitrust prosecutors to seek a breakup of Google’s ad products. The judge ordered that another hearing will determine what Google must do to restore competition in those markets, potentially forcing the company to sell off parts of its business. This marks the second court ruling that Google holds an illegal monopoly, following a similar judgment in a case over online search.
Publisher ad servers are platforms used by websites to store and manage their digital ad inventory. Along with ad exchanges, this technology allows news publishers and other online content providers to generate revenue by selling ads. Judge Brinkema noted that these funds are the “lifeblood” of the internet.
The decision has significant implications for Google and the tech sector. Michael Ashley Schulman, chief investment officer at Running Point Capital, called the ruling a “major inflection point” for Google, underscoring US courts’ willingness to entertain “aggressive structural remedies” in antitrust cases. This could increase regulatory risk premiums across major tech stocks, particularly those with similarly integrated ecosystems, such as Amazon and Meta.
Google has announced plans to appeal the ruling. Lee-Anne Mulholland, vice president of regulatory affairs, stated that while the company won half of the case, it disagrees with the decision on its publisher tools. “Publishers have many options and they choose Google because our ad tech tools are simple, affordable and effective,” she said.
The Department of Justice (DOJ) has suggested that Google should have to sell off at least its Google Ad Manager, which includes the company’s publisher ad server and ad exchange. This potential divestiture could significantly impact Google’s business practices and the broader online advertising landscape.
The ruling comes as Google faces another antitrust trial next week over its dominance in online search. A judge in Washington will consider the DOJ’s request to force Google to sell its Chrome browser and take other measures to end its alleged monopoly.
Experts have noted that while the financial hit from this ruling may be minimal for Google, the long-term implications for the company’s business practices and the tech industry as a whole could be substantial. The case highlights the ongoing scrutiny of major tech companies and their market dominance, with potential consequences for how they operate in the future.
