Google in Hot Water: Court Rules It Holds Illegal Advertising Monopoly

A US district judge has made a landmark ruling declaring that Google possesses an illegal monopoly over online advertising technology. This decision comes after a lawsuit filed by the US Department of Justice alongside 17 states, accusing the tech giant of dominating the market for ad placements. This marks the second antitrust defeat for Google in just one year, following a similar ruling regarding its monopoly in online search. In response to the ruling, Google has announced plans to appeal.

Judge Leonie Brinkema stated that Google had ”wilfully engaged in a series of anticompetitive acts”, enabling it to maintain its monopoly and harming both its publisher customers and the competitive market landscape. Despite losing two of the counts against it, Google’s head of regulatory affairs, Lee-Ann Mulholland, noted that the court dismissed another count and emphasized that advertisers prefer Google for its ”simple, affordable, and effective” ad tech tools.

This ruling is viewed as a significant victory for antitrust enforcement, with Laura Phillips-Sawyer, a law professor at the University of Georgia, highlighting that it shows both the willingness of government agencies to prosecute and judges to uphold the law against big tech firms. The decision may set a legal precedent affecting future corporate dealings in America.

Critics argue Google has leveraged its position to prioritize its own products, thus stifling competition and limiting revenue for premium publishers, according to Jason Kint, head of Digital Content Next. The ruling could influence how advertising revenues are distributed among advertisers, publishers, and service providers, while Anupam Chander, a professor of law, mentioned that average internet users might not notice immediate changes, though the financial dynamics within the industry will be impacted.

The court is heading towards a ”remedies” phase, which could potentially lead to structural changes in how Google operates in the advertising domain, and possibly to calls for breaking up parts of Alphabet, Google’s parent company. The UK’s competition authority has also flagged similar antitrust concerns, suggesting a growing international scrutiny over Google’s business practices.