Court rules Google abused monopoly power in digital advertising

The ruling marks the third significant legal setback for Google in less than a year, as U.S. regulators intensify efforts to curb the dominance of major tech firms, highlighting growing legal pressure on Google’s parent company, Alphabet Inc.

A U.S. federal judge has ruled that Google unlawfully maintained monopolistic control over a vital segment of its online advertising business, marking a significant legal victory for the Department of Justice (DOJ) in its ongoing battle against Big Tech dominance.

The ruling, issued by Judge Leonie Brinkema of the U.S. District Court for the Eastern District of Virginia, centers on Google’s advertising technology infrastructure—often referred to as the “ad tech stack”—which matches digital publishers with advertisers. Judge Brinkema concluded that Google’s integration of its ad server and ad exchange tools gave it an unfair competitive advantage, violating antitrust laws.

The decision focuses on a $31 billion slice of Google’s vast advertising empire and accuses the company of leveraging its market position to suppress competition and dictate the economics of online advertising. The court found that this conduct harmed digital publishers, rival tech firms, and ultimately the public.

“This structure allowed Google to entrench its dominance and limit alternatives in the ad tech market,” Judge Brinkema wrote in her 115-page opinion. “The company’s conduct deprived competitors of a fair opportunity to innovate and serve publishers and advertisers.”

Mounting pressure on Big Tech

The verdict comes amid a broader push from U.S. regulators to rein in the power of large technology firms. It is the third major legal setback for Google in less than a year, following decisions related to its online search monopoly and its mobile app store practices. Together, these rulings highlight mounting legal pressure on Alphabet Inc., Google’s parent company.

Although the judge dismissed one of the DOJ’s claims concerning Google’s advertiser-side tools, the government prevailed on its most crucial argument regarding the company’s bundling of services to reinforce its dominance.

Google swiftly responded to the ruling. “We won half of this case and will appeal the remainder,” said Lee-Anne Mulholland, Vice President of Regulatory Affairs at Google. She added that Google’s advertising products continue to serve publishers effectively and affordably. “The court found no harm in our acquisitions or advertiser tools. We disagree with the decision about our publisher services.”

Global implications for digital competition

The legal experts believe the ruling could pave the way for possible remedies, ranging from operational restrictions to a forced divestiture of portions of Google’s ad business. However, given the mixed outcome, structural remedies may face hurdles.

Industry advocates and lawmakers welcomed the ruling. Sacha Haworth of the Tech Oversight Project hailed it as a major win, saying, “This decision strikes at the heart of Google’s unchecked influence over the digital ad market.” Senator Elizabeth Warren echoed the sentiment, calling it a “critical step toward breaking up Big Tech monopolies.”

Experts believe the judgment could energize global regulatory efforts. “It gives international regulators more confidence to pursue similar cases,” said William Kovacic, a law professor at George Washington University.

Though appeals are expected to prolong the legal process, the ruling sends a clear message: regulators are intensifying efforts to restore competition in the digital economy.