A US judge has determined that Google operates as an illegal monopolist in the online advertising technology sector, specifically within the realms of publisher ad servers and ad exchanges. This decision comes on the heels of a prior ruling that labeled Google an illegal monopolist in the US search engine market, suggesting the possibility of significant changes such as the divestiture of its Ad Manager. Judge Leonie Brinkema from the U.S. District Court for the Eastern District of Virginia issued the ruling as part of a broader antitrust case led by the U.S. Department of Justice.
This judgement follows roughly nine months after a similar court determination regarding Google’s dominance in search engines. The current findings indicate that Google’s monopoly extends primarily to two essential markets: publisher ad servers and ad exchanges. However, antitrust enforcers did not successfully demonstrate whether Google also holds a dominant position in the advertiser ad networks market.
Previous filings suggest that Google has engaged in practices that locked customers into its ad-tech products, acquired competing services to stifle competition, and exerted control over online ad market transactions, resulting in an impressive 87 percent market capture. Following this ruling, attention now shifts to determining appropriate remedies. The District Court has mandated that Google and the opposing parties submit a joint proposed schedule within seven days to discuss their positions.
Given Google’s history of being classified as a monopolist in the search engine domain, the potential remedies could be significant. Previously, there were proposals for the divestiture of Chrome as a solution, along with minor adjustments to Android. This time, similar transformative measures are anticipated, particularly as the lawsuit has suggested the divestiture of Ad Manager as a possibility.
Currently, Google is navigating a challenging landscape, with a trial concerning the divestiture of Chrome set to occur soon, along with ongoing investigations by the UK’s Competition and Markets Authority focusing on various aspects of Google’s operations.
Leave a Reply