A US federal court has ruled that Google illegally holds monopoly power in key digital advertising markets, marking a second major antitrust blow within a year for the tech giant.
District Judge Leonie Brinkema concluded that Google violated Sections 1 and 2 of the Sherman Act by monopolizing the open-web display publisher ad server and ad exchange markets and by unlawfully tying its ad server (DFP) to its ad exchange (AdX).
“Google has willfully acquired and maintained monopoly power,” Brinkema wrote in her 115-page opinion, adding that the company’s conduct had harmed competition, publishers, and ultimately, consumers.
The decision follows a separate 2024 ruling that found Google guilty of monopolizing the general search market, where District Judge Amit Mehta described the company as a “monopolist” that maintained dominance through exclusive contracts with device makers and browsers, shutting out rivals like Bing and DuckDuckGo.
Together, the two rulings strike at the foundation of Google’s revenue engine—advertising accounted for 77.4% of its total revenue in 2023. While the court did not find monopoly power in advertiser ad networks, it validated the DOJ and 17 states’ argument that Google’s ad tech practices were exclusionary and anticompetitive.
Notably, it rejected Google’s bid to dismiss the case and move proceedings to New York.
Google, however, struck a defiant tone. “We won half of this case and we will appeal the other half,” said Lee-Anne Mulholland, VP of Regulatory Affairs. She argued that the decision “incorrectly suggests a company like ours has a legal obligation to do business with competitors,” a stance she claimed conflicts with past Supreme Court precedent.
In a memo to employees, Google emphasized that the case pertains only to a narrow segment of its advertising operations—excluding Search and YouTube ads—and reassured staff that the company remains competitive, citing that “publishers have many options and choose Google because our tools are simple, affordable and effective.”
The giant’s parent, Alphabet, saw its shares fall 3.2% following the decision, while competitor The Trade Desk surged nearly 8%.
The court will now proceed to the remedy phase, which could include divestiture of DFP and AdX, injunctions against anticompetitive conduct, and structural changes that could significantly alter Google’s ad tech dominance.
Information for this briefing was found via Axios, ZeroHedge, and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
