Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
A US federal judge has ruled Google illegally acquired and maintained a monopoly in digital advertising, the latest antitrust defeat for the technology giant that could result in it being forced to divest parts of its business.
Leonie Brinkema, the district judge presiding over the case in Virginia, on Thursday said Google had “wilfully” monopolised two parts of the digital advertising market: the technology online publishers use to sell ad space, and the biggest exchange on which businesses bid for ads.
However, Brinkema found the US Department of Justice, which brought the case, was not able to prove Google unfairly dominated the third component of the market, advertiser ad networks.
The ruling comes after a federal judge in a separate antitrust case last year found the company spent billions of dollars on exclusive deals to maintain an illegal monopoly on search.
The second phase of that trial, in which the court will determine remedies that could include forcing Google to sell parts of its business, begins next week.
The DoJ asked in the search case for Google to sell its Chrome browser, cease $20bn in payments to Apple each year to be its default search engine, and share more data with rivals.
Brinkema on Thursday wrote: “For over a decade, Google has tied its publisher ad server and ad exchange together through contractual policies and technological integration, which enabled the company to establish and protect its monopoly power in these two markets.”
“Google further entrenched its monopoly power by imposing anti-competitive policies on its customers and eliminating desirable product features,” she added.
But she rejected the way the DoJ had tried to define the third part of the market, saying the term “advertiser ad network” was uncommon in the industry and “unduly exclude[s]” publishers.
Google said: “We won half of this case and we will appeal the other half . . . 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 is the latest win for the former antitrust officials appointed by ex-president Joe Biden who brought and litigated the case before Donald Trump returned to the White House.
Jonathan Kanter, the former head of the DoJ’s antitrust unit, said in a post on X on Thursday: “Today is a huge victory for antitrust enforcement, the media industry, and the free and open internet . . . Google is now an illegal monopolist twice over.”
Antitrust officials appointed by Trump have strongly signalled they intend to adopt a tough stance on enforcement, especially against Big Tech. The US Federal Trade Commission this week began making its case against Meta in a monopoly trial in Washington federal court.
The justice department did not immediately respond to a request for comment.
In a reaction, the EU’s competition chief Teresa Ribera said: “We take note of the decision and we will study it with interest. The case being analysed by the European Commission continues.”
The commission is also investigating Google for favouring its own advertising services.
Additional reporting by Barbara Moens in Brussels.
