Judge Delivers Blow to Google’s Monopoly Power

Gavel judges hand glasses and book on desk

A federal judge has ruled that Google operated as an illegal monopoly in online advertising technology, delivering a significant victory to the Justice Department and potentially threatening the tech giant’s digital advertising empire.

Key Insights

  • Judge Leonie Brinkema ruled Google violated the Sherman Antitrust Act by monopolizing publisher ad servers and ad exchanges
  • Google tied its publisher ad server with its ad exchange, forcing websites to use its tools and limiting competition
  • The ruling followed a 15-day trial in September 2024 from a lawsuit filed by the Justice Department and several state Attorneys General
  • The judge will decide on remedies that could include forcing Google to sell parts of its advertising technology business
  • Attorney General Pamela Bondi called it “a landmark victory in the ongoing fight to stop Google from monopolizing the digital public square”

Google’s Monopolistic Practices Exposed

Judge Leonie Brinkema of the U.S. District Court for the Eastern District of Virginia determined that Google engaged in illegal activities to maintain its monopoly over critical components of the online advertising ecosystem. The ruling specifically found that Google monopolized publisher tools and transaction software, though claims regarding advertiser tools were dismissed. This landmark decision comes after an extensive 15-day trial held in September 2024, stemming from a lawsuit filed in January 2023 by the Justice Department and several state Attorneys General.

The court found that Google’s strategic coupling of its publisher ad server (DFP) with its ad exchange (AdX) created a stranglehold on the digital advertising market. This tactic effectively compelled web publishers to use Google’s tools to access real-time bids, significantly hampering their ability to utilize alternative ad tech providers. These practices stifled innovation, limited consumer choices, and allowed the tech giant to charge inflated prices while taking a disproportionate share of sales.

Administration’s Strong Stance Against Tech Monopolies

The ruling represents a major victory for President Trump’s Justice Department, which has been taking aggressive action against tech monopolies. Attorney General Pamela Bondi emphasized the significance of this decision in the ongoing battle against big tech overreach. The case demonstrates the administration’s commitment to preventing powerful technology companies from dominating critical digital spaces and ensuring fair competition in online markets.

“This is a landmark victory in the ongoing fight to stop Google from monopolizing the digital public square,” said Attorney General Pamela Bondi.

Assistant Attorney General Abigail Slater further emphasized the serious nature of Google’s violations, stating that the company “abused its monopoly power” and actively worked to censor and deplatform American voices. The Justice Department also accused Google of attempting to hide information about its illegal conduct, highlighting concerns about transparency that many conservatives have raised about tech giants for years.

Anti-Competitive Tactics and Market Manipulation

The court’s ruling detailed how Google systematically engaged in anti-competitive actions over a 15-year period. These tactics included strategic acquisitions and auction manipulation specifically designed to neutralize or eliminate competitors in the ad tech market. Judge Brinkema determined that Google’s actions violated the Sherman Act, the nation’s foundational antitrust law, which prohibits monopolistic business practices.

“In addition to depriving rivals of the ability to compete, this exclusionary conduct substantially harmed Google’s publisher customers, the competitive process, and, ultimately, consumers of information on the open web,” Judge Brinkema stated.

The evidence presented during the trial revealed how Google deliberately degraded service quality to maintain internal advantages, causing harm to publishers, advertisers, and consumers alike. By forcing websites to use their proprietary tools, Google effectively created a closed ecosystem that severely restricted competition and innovation in the digital advertising space, allowing the company to extract excessive fees from advertisers and publishers.

Potential Remedies and Future Implications

With liability now established, Judge Brinkema will next determine appropriate remedies to address Google’s monopolistic behavior. These measures could potentially include forcing Google to sell parts of its advertising technology business to restore competitive balance to the market. Such a dramatic restructuring would represent one of the most significant government interventions in the technology sector in decades.

“The Court’s ruling is clear: Google is a monopolist and has abused its monopoly power,” Assistant Attorney General Abigail Slater said.

This ruling adds to Google’s mounting legal challenges, which include another federal court decision in 2023 that found the company maintained an illegal monopoly in search. Together, these cases represent serious threats to Google’s business model and could reshape the company’s influence over the internet. For American consumers and businesses, the decision signals a potential shift toward greater competition, innovation, and fairness in the digital marketplace.

Sources:

  1. Google Is Illegally Monopolizing Online Advertising Tech, Judge Rules – The New York Times
  2. Department of Justice Prevails in Landmark Antitrust Case Against Google
  3. Google holds illegal monopolies in ad tech, US judge finds | Reuters
  4. Judge Issues Landmark Ruling in Google Monopoly Case