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Google is a monopoly in online ad tech, federal judge rules
A federal judge has ruled that Google is a monopolist in online advertising. The New York Times reported on Thursday that Judge Leonie Brinkema of the US District Court for the Eastern District of Virginia said the company broke the law to maintain its ad tech dominance. “In addition to depriving rivals of the ability to compete, this exclusionary conduct substantially harmed Google’s publisher customers, the competitive process, and, ultimately, consumers of information on the open web,” the judge said. The case stemmed from a January 2023 lawsuit from the US Justice Department and eight states. They accused Google of illegally monopolizing the ad market and using that power to charge more and take a higher portion of sales. "Competition in the ad tech space is broken, for reasons that were neither accidental nor inevitable," the government said in its complaint. "One industry behemoth, Google, has corrupted legitimate competition in the ad tech industry by engaging in a systematic campaign to seize control of the wide swath of high-tech tools used by publishers, advertisers, and brokers, to facilitate digital advertising." The government says Google holds an 87 percent market share in ad-selling tech. The judge also dismissed a portion of the government's case. “We won half of this case, and we will appeal the other half," Lee-Anne Mulholland, Google Vice President of Regulatory Affairs, wrote in a statement. "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 government claimed Google’s monopoly powers enabled it to force publishers to use its ad software, leaving online media organizations and other websites without much recourse. This reduced the revenue for news sites, especially those without paywalled subscriptions. The media industry is, by and large, in dire financial straits, with closures and layoffs multiplying in recent years. This also has a trickle-down effect, leading to snowballing clickbait headlines and other reader-hostile gimmicks as news orgs try to figure out how to recoup lost revenue and stay afloat. Judge Brinkema's decision follows another in August, when a federal judge ruled that Google monopolizes online search. Judge Amit Mehta of the US District Court for the District of Columbia said in 2024 that the company "is a monopolist, and it has acted as one to maintain its monopoly." Judge Mehta is considering a DOJ request to break up the company based on that ruling. Now, Judge Brinkema will face a similar decision about the nearly $1.9 trillion company's dominance in advertising. The DOJ's lawsuit already asked the court to make Google sell portions of its ad tech business. Much of the company's future will rest on what those two judges decide in the coming months.This article originally appeared on Engadget at https://www.engadget.com/big-tech/google-is-a-monopoly-in-online-ad-tech-federal-judge-rules-151531919.html?src=rss
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