A federal judge has ruled Google operates illegal monopolies in online advertising, potentially forcing the tech giant to sell parts of its digital advertising business and reshaping the internet economy.
Key Takeaways
- U.S. District Judge Leonie Brinkema ruled Google illegally monopolized publisher ad servers and ad exchanges, paving the way for potential breakup of its advertising business.
- The Justice Department is expected to seek the sale of Google Ad Manager, which includes the company’s publisher ad server and ad exchange services.
- Google plans to appeal part of the ruling while a second trial phase will determine remedies for the antitrust violations.
- This verdict follows another recent case where Google was found to have an illegal monopoly over online search.
- Alphabet’s shares fell 1.2% following the announcement as the company faces potential forced divestiture of key business components.
The Court’s Findings Against Google
In a significant blow to one of America’s tech giants, U.S. District Judge Leonie Brinkema has ruled that Google maintains illegal monopolies in two critical areas of online advertising technology. The Virginia federal court found Google liable for monopolizing publisher ad servers and ad exchanges, which are core components of the digital advertising ecosystem. This ruling specifically addressed how Google manages the complex backend systems that publishers use to sell advertising space and how those ads are auctioned to buyers.
The decision follows a thorough examination of Google’s business practices and acquisitions that have built its dominance in online advertising. Judge Brinkema determined that Google didn’t simply achieve market leadership through superior products, but rather through anticompetitive practices that harmed the entire online ecosystem.
“Google further entrenched its monopoly power by imposing anticompetitive practices on its customers and eliminating desirable product features,” wrote Judge Brinkema in her ruling. “In addition to depriving rivals of the ability to compete, this exclusionary conduct substantially harmed Google’s publisher customers, the competitive process, and, ultimately, consumers of information on the open web.”
BOOM: Google loses ANOTHER antitrust suit, it's a monopolist of the software used by publishers to manage online ads, as well as the exchanges used to buy and sell online ads. pic.twitter.com/5bstcP50PN
— Matt Stoller (@matthewstoller) April 17, 2025
Potential Remedies and Google’s Response
The ruling opens the door for the Department of Justice to seek a breakup of Google’s advertising technology business. Prosecutors are expected to push for Google to sell its Google Ad Manager suite, which includes both its publisher ad server and ad exchange. This would represent one of the most significant forced breakups of a technology company in American history and could fundamentally reshape how online advertising functions across the internet.
Google has already indicated it plans to fight portions of the decision. “We won half of this case and we will appeal the other half,” said Lee-Anne Mulholland, Google’s vice president of legal. The company maintains that its advertising tools are chosen by publishers because they are “simple, affordable and effective,” and argues that the case focused on past practices while ignoring current competition from other tech giants like Amazon and Comcast.
Broader Implications for Tech Regulation
This verdict represents the second major antitrust loss for Google in recent months, following a separate ruling that the company maintained an illegal monopoly in online search. Together, these cases signal a significant shift in how American courts and regulators are approaching dominant technology platforms. The rulings could embolden further antitrust action against other tech giants that control critical digital infrastructure.
“This ruling is an unequivocal win for the American people that will help lower prices, increase competition, and lead to a better internet for everyone,” said Sacha Howarth, a spokesperson for a coalition supporting the Justice Department’s case.
In response to the ruling, Alphabet’s shares fell by 1.2%, reflecting investor concern about potential forced divestitures. The judge will now set a briefing schedule and hearing date to determine the appropriate remedies for Google’s antitrust violations. While the Justice Department is likely to seek structural changes through divestiture, the court could alternatively impose behavioral remedies designed to ensure fair competition without breaking up Google’s business.
The Financial Stakes
The financial implications of this ruling are enormous. During the trial, DOJ attorneys argued that Google abuses its market power by taking up to 35 cents per dollar spent on its advertising platforms. Google’s advertising technology business represents a critical revenue stream for the company, with billions of dollars at stake. Any forced divestiture would dramatically alter Alphabet’s business model and potentially create new competitive dynamics in the digital advertising industry.
The case also highlighted how Google has previously considered selling its ad exchange to satisfy European antitrust regulators, suggesting the company recognizes the regulatory pressure it faces globally. A separate trial in Washington will further address the Justice Department’s request for Google to sell its Chrome browser and make other changes to address its dominance in online search, compounding the challenges facing the company.
