In a recent ruling, a U.S. federal judge declared that Google used its monopoly power in the ad tech market unfairly. The court found that the tech giant manipulated ad tools for profit. Judge Leonie Brinkema stated that Google abused its control over ad servers and exchanges to dominate the industry. For more than a decade, Google connected its ad server and ad exchange, limiting competition. This strategy helped Google strengthen its position and reduce threats from competitors. The company also removed useful product features and imposed restrictive rules to maintain control.
Google’s Expansion Through Acquisitions
Google built its ad empire over 17 years. The company’s digital ad network expanded through its search engine and services like Chrome, YouTube, and Google Maps. A key moment was the 2008 purchase of DoubleClick for $3.2 billion. This acquisition allowed Google to manipulate ad pricing and control revenue streams for many websites. Regulators initially approved the deal but later realized it gave Google an unfair market advantage. The company’s further acquisitions only solidified its hold on the industry.
Legal Battles and Responses from Google
The ruling follows a similar 2023 decision that found Google’s search engine suppressed competition. Google has announced plans to appeal the decision in the ad tech case. In a statement, Vice President Lee-Anne Mulholland defended the company’s ad tools, calling them user-friendly and affordable. She argued that publishers choose Google voluntarily, from a wide range of alternatives.
The Justice Department started investigating Google during President Trump’s administration. The investigation has continued under President Biden, leading to these recent rulings. Google’s legal team rejected the claims, stating that the government misunderstood the current ad tech market. They pointed to competition from companies like Meta, Amazon, Microsoft, and Comcast to show that the market remains diverse.
Next Steps and Ongoing Hearings
A penalty phase for Google will follow this ruling, likely starting later this year or early next year. Meanwhile, hearings on Google’s search monopoly are scheduled to begin in Washington, D.C. on Monday. In these hearings, prosecutors are requesting that Judge Amit Mehta order Google to sell its Chrome browser. The company now faces a prolonged legal battle as it seeks to overturn these rulings.
