The US Department of Justice has won a lawsuit against Google over its alleged monopoly power in the ad tech industry. The court ruled that Google “willfully engaged in a pattern of anticompetitive conduct” and that the tech giant’s practices caused “substantial harm” to customers and users.
The court found Google liable under Sections 1 and 2 of the Sherman Act. According to the ruling, “plaintiffs have shown that Google knowingly engaged in a pattern of anticompetitive conduct to obtain and maintain monopoly power in the ad placement and ad exchange markets for the open web.” For more than ten years, Google tied its ad platform for publishers to its ad exchange through contractual obligations and technological integration. This allowed the company to establish and maintain monopolies in both markets.
The DOJ alleged that Google unlawfully monopolized three areas of ad tech: tools for website owners, platforms for advertisers, and ad exchanges that facilitate transactions. As a result, the court found that Google made monopoly profits at the expense of publishers and advertisers, who had few genuine alternatives and were therefore placed in a dependent position.
Google Denies Wrongdoing and Cites Business Justifications
Google’s legal team dismissed the DOJ’s allegations as far-fetched and out of touch with the realities of the market. According to the company, its tools help both publishers and advertisers generate revenue. Moreover, Google argued that the availability of such tools across different services offers maximum convenience to users. They further claimed that the company acted based on legitimate business reasons and accused the government of attempting to dictate how Google should operate.
Another factor that supported the DOJ’s position, according to the court, was Google’s failure to preserve internal communications. The issue stemmed from an internal messaging app that allegedly deleted chat records between employees, which raised concerns over transparency and cooperation during the investigation.
This ruling arrives in advance of another high-stakes lawsuit between Google and the DOJ—this time over Google’s dominance in the search engine market. If the tech giant loses that case as well, it could face significant consequences, including the possibility of a forced breakup, notes NIXsolutions.
The case marks a significant step in antitrust enforcement against big tech, and we’ll keep you updated as more developments unfold.