By A U.S. federal judge has ruled that Google illegally dominates two major digital advertising markets, marking a major defeat for the tech giant and potentially opening the door for a breakup of its ad business. The Thursday ruling by Judge Leonie Brinkema in Virginia concluded that Google “willfully acquired and maintained monopoly power” over publisher ad servers and ad exchanges.
This legal blow paves the way for another courtroom showdown where prosecutors could push for Google to divest parts of its ad empire. The Justice Department believes a breakup is necessary to restore fair competition, though no date has been set for that trial yet.
“Google’s exclusionary conduct substantially harmed publisher customers, the competitive process, and consumers,” Brinkema stated. She described online ad revenue as the “lifeblood” of the internet and said Google’s grip on this system has crushed fair play.
However, the court rejected one antitrust claim, finding that Google does not hold a monopoly over ad networks—a partial win for the company. Still, U.S. Attorney General Pamela Bondi hailed the decision as “a landmark victory” and promised continued legal action to rein in Big Tech.
Google isn’t backing down. Lee-Anne Mulholland, the company’s VP of Regulatory Affairs, confirmed they will appeal. “We won half of this case, and we will appeal the other half,” she said, defending their ad tools as “simple, affordable, and effective.”
Following the ruling, Google’s stock dipped 1.4%. While analysts don’t expect immediate financial damage, pressure is mounting. The DOJ wants Google to sell off its Ad Manager unit, which includes both the ad server and exchange tools found guilty in court.
