Technology

IIE DIGITAL DESK :   U.S. District Judge has ruled that Google holds illegal monopolies in the online advertising technology market, confirming that the company’s practices stifled competition. The ruling is part of an ongoing antitrust case filed by the U.S. Department of Justice (DOJ) and several state attorneys general.

The court found that Google abused its dominant position in the digital advertising sector, particularly through its control over ad servers and exchanges. Google’s behavior was deemed anticompetitive, as it tied its ad server, Google Publisher, with its ad exchange platform, Google Ads, effectively making it difficult for competitors to enter or thrive in the market. This monopoly behavior led to higher prices and reduced choices for advertisers and publishers alike.

The judge’s decision highlighted that Google's dominance in the digital advertising industry—holding more than 90% of the market share—has made it nearly impossible for any new or smaller competitors to gain ground. This unfair advantage, according to the DOJ, has harmed both businesses and consumers by eliminating fair competition and driving up ad prices.

While the ruling marks a victory for the government’s antitrust efforts, the judge did not find Google's behavior in all sectors of the advertising market to be monopolistic. For example, the case did not cover Google’s control over its advertiser ad networks.

As the case moves forward, the court will determine appropriate remedies, which could include forcing Google to divest parts of its advertising technology business. This development has sparked discussions about future regulatory actions and the ongoing scrutiny of big tech companies.

Google has stated its intention to appeal the decision, defending its business practices as beneficial for the digital ad ecosystem.