Google Faces Fresh Antitrust Fire as Court Backs DOJ in Ad Monopoly Case

GuruFocus.com
04-18

April 17 - A U.S. federal judge has found that Google (NASDAQ:GOOG) unlawfully dominated key parts of the online advertising industry, potentially paving the way for the Department of Justice to pursue a breakup of the tech giant's ad business.

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Judge Leonie Brinkema ruled that Google held an illegal grip on both the tools used by publishers to sell ads and the platforms advertisers use to purchase them. The ruling bolsters the DOJ's case to force divestitures, including parts like Google Ad Manager and its ad exchange.

This legal setback could result in Google facing court orders from two separate cases in 2025, one related to its digital advertising dominance and another set for trial next April over its control in search and Chrome browser operations.

Google had already floated the idea of selling its ad exchange in talks with European regulators. However, U.S. authorities are seeking stronger remedies to curb their market influence.

During the three-week trial, prosecutors and several states accused Google of buying up rivals and locking clients into its ecosystem. Google countered that the claims are outdated and argued that newer players like Amazon (NASDAQ:AMZN) and Comcast (NASDAQ:CMCSA) are gaining ground as digital ad dollars shift toward streaming and mobile apps.

This article first appeared on GuruFocus.

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