Google's Antitrust Struggle: Unraveling Online Ad Dominance

A U.S. judge ruled that Google's control over online advertising markets was illegal, reinforcing federal antitrust actions against Google. This decision might lead to Google divesting its Google Ad Manager. Facing another case regarding its browser and search dominance, Google could be compelled to alter its business strategies.

Alphabet's Google has been found to unlawfully dominate two online advertising technology markets, according to a federal judge's ruling on Thursday. This decision marks a significant challenge for the tech giant in an antitrust lawsuit pursued by the U.S. government.

U.S. District Judge Leonie Brinkema, based in Alexandria, Virginia, issued the ruling which could bolster prosecutors' calls for a division of Google's advertising assets. The U.S. Department of Justice argues that Google should divest parts of its Google Ad Manager, specifically the publisher ad server and ad exchange components. Facing such pressures, Google may encounter two separate court proceedings by 2025 pushing for asset sales or business model modifications, including a trial in Washington aiming to dismantle its Chrome browser dominance and online search practices.

Historically, Google considered selling its ad exchange to satisfy European antitrust concerns, as reported by Reuters. During a three-week trial, the DOJ and multiple states attempted to prove Google's monopolistic control over publisher ad servers, advertiser ad networks, and its efforts in monopolizing ad exchanges—crucial connectors between marketers and advertisers. The prosecution portrayed Google as employing monopolistic strategies like acquiring rivals, confining clients to its ecosystem, and dictating online advertisement transactions. In rebuttal, Google claimed the focus was backward-looking and neglected how digital advertising is evolving with potential competitors like Amazon and Comcast in the modern adscape.

(With inputs from agencies.)