A US judge has ruled that Google broke antitrust laws. The case is about Google’s online advertising business. The judge said it acted unfairly. Google used its power to control the ad tech market.
The judge found that Google had too much control over two areas. These are ad exchanges and ad servers. Ad exchanges are platforms where ads are bought and sold. Ad servers are tools that help websites manage ads.
However, the judge said Google is not a monopoly in another area. This area is about tools used by advertisers to buy display ads.
The case caused Google’s stock to fall. After the ruling, shares dropped by 3.2% but later recovered a little. The U.S. Justice Department said this ruling proves Google is a monopolist.
This is the second ruling against Google in one year. Another case about Google’s search business will start soon. In that case, the government wants Google to sell its Chrome browser.
The judge said Google’s actions hurt its customers and hurt competition. Google forced websites to use its ad tools for more than 10 years. This blocked other companies from competing. It also harmed publishers and people using the internet.
The court will hold another hearing to decide the punishment. The Justice Department and a group of states sued Google in 2023. They said Google controlled three parts of the ad tech business: ad servers, ad exchanges, and ad networks.
The judge said Google’s past deals, like buying DoubleClick and Admeld, were not illegal. However, Google used these deals to become more powerful.
Google said it disagrees with the court’s decision. A Google leader said publishers choose Google’s tools because they are easy to use and work well.
The Justice Department said the ruling is a big win for fair competition. The antitrust chief said this will help the media industry and the open internet.
The judge wrote that Google used its DoubleClick deal to control the market. More advertisers wanted to use Google’s services. More websites wanted to work with Google. This created a cycle that made Google stronger and stronger.
The government also said Google destroyed some evidence. The judge agreed but said extra punishment was not needed. She said the government already had enough proof to win.
For the advertiser-side of the market, the judge ruled in favor of Google. She said advertisers can choose other platforms. The judge gave an example of a business owner who moved from Google to Instagram.
In the end, the judge said Google’s business choices after its deals hurt competition. Google will appeal the ruling.