Google has lost a landmark antitrust case brought by the United States Department of Justice, which accused the tech giant of illegally monopolizing the online advertising technology market. The ruling, made by U.S. District Judge Leonie Brinkema on Thursday, found that Google violated antitrust laws in the markets for advertising exchanges and tools used by websites to sell ad space, known as ad servers.
The court found that Google had "willfully engaged in a series of anticompetitive acts" that resulted in it obtaining monopoly power in the open-web display publisher ad server market.
The court also criticized Google for its "systemic disregard of the evidentiary rules regarding spoliation of evidence and its misuse of the attorney-client privilege," though it did not impose sanctions because the government prevailed on the available evidence.
The decision is a significant blow to Google, as it could lead to the company being required to divest parts of its ad tech business. The Justice Department will ask the court to require Google to sell off portions of its advertising business.
Assistant Attorney General Abigail Slater of the Justice Department's Antitrust Division stated, "The Court’s ruling is clear: Google is a monopolist and has abused its monopoly power."
Google has said it will appeal the part of the case that it lost. Lee-Anne Mulholland, the company's vice president of regulatory affairs, noted that the court found that Google’s advertiser tools and its acquisitions, such as DoubleClick, do not harm competition.
Alphabet's shares quickly sank by up to 3.2% on the ruling, though they pared losses to close down 1.4% in New York.
The Justice Department and a group of states sued Google in 2023, arguing that the company illegally monopolized three separate markets related to the technology used for online display advertising: ad servers, exchanges, and networks.
Thursday's ruling comes on the heels of another major antitrust loss for Google in a separate case, where a federal judge ruled that Google acted illegally to maintain its search monopoly.
The Justice Department will now move to the remedies phase of the trial, where it will argue for specific actions to be taken against Google, including potential divestitures.
This case is part of a broader wave of antitrust actions against major tech companies, including Meta, Amazon, and Apple, which could profoundly shape the future of the tech industry.
This ruling marks a significant victory for antitrust enforcement and could have far-reaching consequences for Google's business and the broader tech landscape.
