Google has lost yet another huge antitrust case — and the search giant is still facing another antitrust-related trial later this month. On top of that, the company just received an antiturst cease-and-desist order from Japan’s Fair Trade Commission, which follows an antitrust fine upheld in 2024 by the European Union.
On Thursday, a federal judge ruled that Google violated antitrust laws and illegally monopolized the online ad tech industry. In 2023, Google made $237.9 billion from advertising revenue, far more than competitors like Microsoft and Baidu. The Justice Department and 17 states joined together to sue Google in this case.
The ruling states, “Plaintiffs have proven that Google has willfully engaged in a series of anticompetitive acts to acquire and maintain monopoly power in the publisher ad server and ad exchange markets for open-web display advertising.”
After U.S. District Judge Leonie Brinkema’s ruling, it is likely that the U.S. Department of Justice will force the Alphabet-owned search company to sell off its Google Ad Manager, including its publisher ad server and its ad exchange. The DOJ has recommended such action prior to the court ruling.
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During the three-week-long trial, the DOJ argued that Google monopolized the industry by buying up competitors and locking its publishers and advertisers into using its products. Google argued that it provided a more affordable solution to its customers than more expensive competitors.
Google’s online advertising technology, which connects publishers and advertisers, accounts for around 12 percent of Alphabet’s business. Spinning off Google Ad Manager would not affect the company too much, as the bulk of the search company’s revenue comes from ads served on its own platforms like Google Search and YouTube. In fact, Google previously looked into selling off part of its ad tech business as a result of EU antitrust regulations, as Reuters reported last year.
This marks the second time Google has lost a big antitrust case in less than a year.
In August 2024, a U.S. judge ruled that Google violated antitrust laws with its agreement with Apple, which saw the search giant pay the iPhone maker $20 billion per year in exchange for Google Search being the default search product on iOS.
Later this month, a trial will be held to determine what Google will need to do as a result of that antitrust trial. The DOJ has recommended that Google sell off its web browser Google Chrome. The DOJ has also recommended that if this does not remedy Google’s monopoly of the industry, then Google may have to sell off its mobile operating system Android.
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