In a landmark antitrust ruling delivered on Thursday, April 17, 2025, a U.S. federal judge declared that Google illegally monopolized key segments of the online advertising technology market. This decision marks a significant blow to the tech giant, already facing increasing scrutiny from regulators and lawmakers.
Judge Leonie Brinkema of the U.S. District Court for the Eastern District of Virginia stated that Google violated antitrust laws by "willfully acquiring and maintaining monopoly power" in two specific markets: publisher ad servers and ad exchanges. Publisher ad servers are the platforms used by website owners to manage and sell their advertising space. Ad exchanges, on the other hand, function as digital marketplaces connecting advertisers with publishers, auctioning off ad space in real-time. The Department of Justice (DOJ) and 17 state attorneys general brought the case against Google in 2023, accusing the company of leveraging its control over publishing tools and other crucial services to lock in an illegal monopoly in the almost $300 billion U.S. market for digital ads.
However, in a partial win for Google, Judge Brinkema found that the antitrust enforcers failed to prove that Google held a monopoly in advertiser ad networks, which are platforms that connect advertisers to web publishers looking to host ads.
This ruling is the second major antitrust loss for Google in less than a year. In August 2024, another judge found that Google illegally monopolized the online search and advertising markets over the past decade. These legal setbacks highlight the growing efforts by the U.S. government to curb the power of Big Tech companies, which collect vast amounts of user data to fuel their advertising businesses.
The implications of this ruling could be far-reaching. The Justice Department may now pursue remedies that include a forced breakup of Google's advertising business. The DOJ has previously advocated for Google to divest at least its Google Ad Manager, a suite of tools encompassing the company's publisher ad server and ad exchange. Google now faces the potential of being subjected to divestiture orders or significant changes to its business practices from two separate U.S. courts. A trial is scheduled to commence next week in Washington, D.C., where a judge will consider the DOJ's request to compel Google to sell its Chrome browser and implement other measures aimed at curbing its dominance in online search.
Google maintains that it "won half of this case and we will appeal the other half." Lee-Anne Mulholland, Google's Vice President for Regulatory Affairs, stated, "The Court found that our advertiser tools and our acquisitions, such as DoubleClick, don't harm competition. We disagree with the Court's decision regarding our publisher tools. Publishers have many options and they choose Google because our ad tech tools are simple, affordable, and effective."
The ruling underscores the importance of digital ads, which Judge Brinkema described as the "lifeblood of the Internet," enabling users to access many popular websites without paying subscription fees. However, the ruling also highlights concerns about Google's immense power over online advertising, allowing the company to potentially manipulate the system to benefit itself and harm rivals. It keeps an estimated 35% of every dollar spent on digital advertising.
The next phase of the case will focus on determining the appropriate remedies for Google's antitrust violations. This could involve significant changes to Google's business practices, potentially reshaping the online advertising landscape and opening the door for greater competition. The ruling could also influence other ongoing antitrust cases against major technology companies, signaling a shift towards greater regulatory oversight of the tech industry.
