A US court found Google guilty of illegal monopoly in the online advertising technology market

Federal Judge Leonie Brinkima of the U.S. District Court for the Eastern District of Virginia ruled that Google used illegal methods to maintain a monopoly in online advertising technology, The New York Times reported. This is the second antitrust ruling against the company this year.

The lawsuit by the U.S. Department of Justice and a group of states concerned a software system that automatically conducts instant auctions to place ads across the internet. This ecosystem includes Google Ad Manager and other products Google acquired along with DoubleClick in 2008. In 2023, this business brought Alphabet about $31 billion — about a tenth of the parent company’s total revenue, and Google’s share of the ad sales technology market is about 87%.

During a three-week trial in September, the Justice Department argued that Google imposed its tools on publishers and used its dominance to charge excessive fees, hurting free content sites and undermining competition. The court also heard testimony from executives at major media and advertising agencies about the negative impact these practices had on their businesses.

"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 noted, while simultaneously dismissing one of the claims.

Google argued in court that it faces stiff competition not only from other ad technology providers but also from social media and streaming platforms, including TikTok and Netflix. The company's lawyers cited a 2004 Supreme Court case that protects the right of businesses to choose their partners and integrate their products. "Google’s conduct is a story of innovation in response to competition," said Karen Dunn, the company's lead attorney.

The ruling follows another ruling in August that found Google a search monopoly. The Justice Department is now seeking to break up the company. Both cases, and potential injunctions against mergers and acquisitions, could lead to significant structural changes at Google, limiting its influence over the online advertising infrastructure and reducing its overall power on the web.

In the ad tech lawsuit, the Justice Department has previously sought to force Google to sell off a portion of its dominant ad sales business. If the court approves such measures, it could significantly weaken Google's market position.