By The Pancake of Heaven! - Own work, CC BY-SA 4.0
A US federal judge ruled on Thursday, April 17, that Google unlawfully dominated significant segments of the online advertising market, representing a significant defeat for the tech company in an antitrust lawsuit initiated by the US government.
Judge Leonie Brinkema, located in Alexandria, Virginia, determined that Google had exerted unfair monopoly power in two essential areas: publisher ad servers and ad exchanges, which facilitate connections between advertisers and websites or applications. However, she indicated that there was insufficient evidence to establish that Google monopolized advertiser ad networks.
This ruling enables the US Department of Justice to advocate for the dismantling of certain aspects of Google’s advertising operations. The government has already suggested that Google divest its Google Ad Manager, which encompasses both the ad server and ad exchange components.
The decision follows a three-week trial held last year, led by the Justice Department alongside several US states. During the trial, government attorneys accused Google of employing unfair strategies to sustain its market dominance, including acquiring competitors, binding customers to its ecosystem, and controlling the processes of digital advertising transactions.
In its defense, Google contended that the case overly focused on historical conduct. The company’s legal representatives asserted that it had made efforts to enhance the openness and compatibility of its tools with other platforms. They also highlighted the growing competition from firms like Amazon and Comcast, especially as advertising expenditures increasingly shift towards mobile applications and streaming services.
Ongoing Legal Challenges for Google
This ruling is not the only legal issue confronting Google. A different court in Washington is scheduled to commence a trial next week, where the Justice Department is pursuing significant alterations to Google’s search operations, which may include the potential sale of the Chrome browser.
Previously, Google has reportedly contemplated divesting portions of its advertising business to alleviate competition concerns raised by European regulators.
