In a landmark ruling, Judge Leonie Brinkema has found Google guilty of violating U.S. antitrust laws in two of three contested digital advertising markets. The Department of Justice (DOJ) successfully argued that Google monopolized the markets for publisher ad servers and ad exchanges and unlawfully tied its ad server (DFP) with its ad exchange (AdX), thereby breaching Sections 1 and 2 of the Sherman Act. However, the court did not find Google guilty of monopolizing the advertiser ad network market, a partial win for the tech giant.
Remedies Phase Begins as DOJ Seeks Breakup of Google’s Ad Tech Monopoly
With liability established, the case moves into the remedies phase. The DOJ is advocating for a structural break-up, specifically targeting Google’s sell-side ad tech business, including Google Ad Manager. While such a radical remedy is under consideration, it faces significant scrutiny and is compared to opening Pandora’s Box, given the vast influence and integration of Google’s ad infrastructure. The court has asked both parties to submit a proposed schedule for briefs and hearings regarding these potential remedies.
Judge Rules Google Violated Antitrust Laws, DOJ Pushes for Ad Tech Breakup Amid Industry FearsThe trial uncovered internal communications suggesting Google was aware of the restrictive environment it created for publishers. These revelations date back to policy shifts following Google’s acquisition of DoubleClick in 2008, which DOJ lawyers argue laid the groundwork for anti-competitive practices. Testimonies and documents revealed that Google’s strategies intentionally locked publishers into its ecosystem, reinforcing its dominance in the ad tech stack.
Proposed Breakup Could Balance Regulation, But Industry Skepticism and Risks Remain High
Industry experts, including Megan Gray and Richard Kramer, propose that spinning off Google’s ad tech arm into a regulated, transparent, and capped-profit entity could be a viable middle ground. Such a solution could ease regulatory tensions while protecting publishers who depend on Google’s tools for revenue. Some even believe Google might embrace this outcome, as its ad tech operations are relatively low-margin and high-risk compared to its AI and search businesses.
Despite suggestions for a smoother transition, many in the industry remain skeptical. Survey results indicate that stakeholders believe divestiture alone may not fix the systemic issues and call for deeper regulatory oversight. Concerns are high that dismantling such a crucial part of the online advertising ecosystem could reduce publisher revenue.
Critics argue that Google should stop buying ad inventory directly through Google Ad Manager and instead compete fairly in open header bidding auctions, leveling the playing field for all participants.
