Google monopolised online ads, a court determined.
Google has been ruled an illegal monopolist in online advertising by a federal court, potentially leading to a breakup of its ad business.
U.S. District Judge Leonie Brinkema has determined that Google unlawfully monopolized advertising markets. The ruling established that Google had a monopoly-like control over various advertising markets, which it leveraged to its advantage.
Judge Brinkema’s ruling found that Google’s monopoly impacted the market for publisher ad servers and ad exchanges, allowing Google to influence how advertisers purchased ads and how much publishers sold ad space for.
The court’s decision could potentially result in Google having to restructure its advertising business to comply with the ruling and address the monopoly issue.
A big squeeze
The U.S. government argued that Google used its dominance to manipulate ad prices and stifle competition, harming both consumers and market competition.
The judge has instructed the involved parties to present proposals on how to address Google’s ad tech monopoly, including potential divestments or restructuring.
Twice the monopoly
This isn’t the first time Google has been accused of being an illegal monopoly. In a previous case, a court ruled that Google held an unlawful monopoly in the search engine market.
Although Apple wasn’t part of the ad market case, it played a role in the search engine market case where Google allegedly paid billions to stay as the default search engine on Safari.
Break-ups and benefits
The ruling increases the likelihood of Google facing a breakup or divestment to address its monopoly status. The court will review proposed remedies to address the antitrust concerns.
Any changes to Google’s ad business could potentially benefit Apple, as the iPhone maker has been expanding its own advertising operations and could capitalize on increased competition.
The outcome could have contrasting effects compared to the previous monopoly case, potentially impacting Google’s payments to Apple for Safari search preferences.