Federal Judge Rules Google Illegally Monopolized Online Ad Tech Markets

ALEXANDRIA, Va. — In a landmark decision, a federal judge has ruled that Alphabet Inc.'s Google engaged in illegal monopolistic practices within the online advertising technology market, dealing a significant blow to the tech giant’s sprawling ad business. U.S. District Judge Leonie Brinkema, in a 115-page ruling issued Thursday, found Google liable for "willfully acquiring and maintaining monopoly power" in two critical ad tech markets: publisher ad servers and ad exchanges. The ruling also highlighted Google’s illegal tying of its ad server and exchange platforms, practices that stifled competition and harmed publishers and consumers alike.

The case, brought by the U.S. Department of Justice (DOJ) and a coalition of states in January 2023, accused Google of monopolizing key segments of the digital advertising ecosystem. Judge Brinkema’s decision confirmed that Google violated Sections 1 and 2 of the Sherman Antitrust Act by tying its publisher ad server, DoubleClick for Publishers (DFP), to its ad exchange, AdX, through restrictive contracts and technological integration. “For over a decade, Google has tied its publisher ad server and ad exchange together through contractual policies and technological integration, which enabled the company to establish and protect its monopoly power in these two markets,” Brinkema wrote.

The court found that Google’s actions suppressed competition, limited innovation, and reduced choices for publishers, who were effectively locked into Google’s ecosystem. Publishers testified during the three-week trial that switching away from Google’s platforms could result in significant revenue losses—News Corp, for instance, estimated a $9 million hit in 2017 alone if it had abandoned Google’s tools. The ruling noted that Google’s practices not only harmed its publishing clients but also impacted consumers by reducing the quality and diversity of information available on the open web.

However, the DOJ’s claim that Google monopolized the market for advertiser ad networks was dismissed, as the court found insufficient evidence to define this as a distinct market where Google held monopoly power. Google’s vice president of regulatory affairs, Lee-Anne Mulholland, stated, “We won half of this case and we will appeal the other half,” emphasizing that the company believes its tools benefit publishers and advertisers.

The ruling marks the second major antitrust defeat for Google within a year, following a 2024 decision by U.S. District Judge Amit Mehta, who found Google illegally maintained a monopoly in online search. Analysts suggest this latest decision could pave the way for significant remedies, including the potential breakup of Google’s ad tech business. The DOJ has proposed that Google divest at least its Google Ad Manager platform, which encompasses both DFP and AdX. A separate hearing to determine remedies is expected, though no date has been set.

Google has previously explored selling its ad exchange to address European antitrust concerns, but European publishers rejected the proposal as insufficient, according to Reuters. The company’s critics argue that its dominance—controlling an estimated 90% of online ad impressions through DFP and AdX—has allowed it to charge higher prices and take larger cuts of ad revenue, to the detriment of publishers and advertisers.

“This ruling is a critical step toward restoring competition in digital advertising,” said a DOJ spokesperson. “Google’s monopolistic practices have harmed the open internet, and we will seek remedies to ensure a fair and innovative market.”

As Google prepares to appeal, the tech industry and regulators are closely watching the outcome, which could reshape the economics of online advertising and influence global antitrust efforts. With another DOJ trial looming next week over Google’s search dominance, the company faces mounting legal challenges to its business model.

Sources: Reuters, Financial Post, The Verge, The Washington Post, Bloomberg

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