A U.S. District Judge in Alexandria, Virginia, ruled that Alphabet’s Google had unlawfully monopolized two online advertising technology markets, specifically publisher ad servers and ad exchanges, presenting an anti-competitive behavior in those sectors.
The big picture: Judge Leonie Brinkema found Google culpable of “willfully acquiring and maintaining monopoly power” in the mentioned markets but dismissed the claim of the tech giant’s monopoly in advertiser ad networks.
- Google’s Vice President of Regulatory Affairs, Lee-Anne Mulholland, announced the company’s intention to appeal the ruling, expressing disagreement with the decision regarding Google’s publisher tools, emphasizing that publishers have a variety of ad tech options and choose Google for its simplicity, affordability, and effectiveness.
Go deeper: The judgment sets the stage for further legal proceedings to determine appropriate measures to restore competition in the affected markets, which might involve Google divesting parts of its business or undergoing a structural transformation through a potential breakup.
- The Department of Justice (DOJ) proposed that Google should divest at least Google Ad Manager, encompassing the publisher ad server and ad exchange, as part of the efforts to address the anti-competitive practices identified by the court.
- Google is now faced with the prospect of complying with court orders to sell assets or modify its business operations, as it awaits a trial in Washington concerning the DOJ’s request for measures to end its dominance in online search, potentially involving the sale of its Chrome browser.
Driving the news: During a three-week trial overseen by Judge Brinkema, prosecutors contended that Google engaged in tactics typical of establishing a monopoly, such as acquiring competitors, enforcing customer lock-ins, and regulating online ad transactions – all practices that hindered market competition.
- Google’s defense argued that the prosecution focused on historical practices and disregarded the evolving competitive landscape, highlighting the presence of other technology firms like Amazon.com and Comcast in the digital advertising market.
