Tuesday, 02 January 2024 12:17 GMT

Google discovered to control online ad monopoly


(MENAFN) A U.S. federal judge has ruled that Google violated antitrust laws by monopolizing the online advertising industry, potentially forcing the tech giant to sell parts of its ad business.

The ruling, delivered Thursday by Judge Leonie Brinkema in Virginia, marks a major legal defeat for Google as it faces growing scrutiny from regulators aiming to curb Big Tech’s market dominance. The decision focuses on the company’s $31 billion ad segment, where it connects advertisers with website publishers.

Judge Brinkema found that Google unlawfully tied its ad server and publisher exchange together, enabling it to build and maintain a monopoly in the market for over ten years. The judge noted that this strategy prevented competitors from fairly participating and harmed the broader digital ad ecosystem.

In response, Google stated it would appeal the ruling, defending its practices as supportive of both advertisers and publishers. “We won half of this case and will appeal the other half,” said Lee-Anne Mulholland, Google’s vice president of regulatory affairs. She emphasized that the court upheld Google's advertiser tools and acquisitions.

This legal setback follows another 2023 judgment where Google was found to hold a monopoly in online search. The ruling is part of an escalating crackdown on tech industry giants that began during Donald Trump’s presidency and continues under both political parties.

Meanwhile, Meta, Facebook’s parent company, is also on trial over claims it eliminated competition through aggressive acquisitions. Google could now face forced divestitures or significant changes to its ad operations. In a separate case, the Justice Department is seeking to break off parts of Google's business, including its Chrome browser and search dominance.

Senator Elizabeth Warren hailed the verdict as “a big win in the fight to break up Big Tech,” crediting it to years of advocacy aimed at curbing the power of tech conglomerates.

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