Google Loses Ad Tech Monopoly Trial, Plans to Appeal

The court found that Google intentionally engaged in anti-competitive monopolistic behavior — forcing customers to use its publisher ad server (DFP) and its ad exchange (AdX) — which restricted fair advertising competition.

In the 115-page ruling, Judge Leonie Brinkema concluded: “Plaintiffs have proven that Google has willfully engaged in a series of anticompetitive acts to acquire and maintain monopoly power in the publisher ad server and ad exchange markets for open-web display advertising.”

The court ruled that this behavior harmed competitors — preventing them from entering markets, as well as reducing innovation and fair pricing — and also negatively affected consumers.

“In addition to depriving rivals of the ability to compete, this exclusionary conduct substantially harmed Google’s publisher customers, the competitive process, and, ultimately, consumers of information on the open web.”

However, the court dismissed the third count, monopolization of the advertiser ad network market, because of insufficient evidence. 

Next steps with the case involve the court deciding how Google should be penalized and what changes Google must make; both Google and the Department of Justice will submit a proposed schedule to evaluate and impose remedies. Starting April 21, the evidentiary hearing will bring in testimonies from top tech executives, such as Google CEO Sundar Pichai, ChatGPT head Nick Turley, and more.

Google plans to appeal the ruling. Lee-Anne Mulholland, Google’s vice president of regulatory affairs, said in a statement provided to Ars Technica: “We won half of this case and we will appeal the other half. … We disagree with the Court’s decision regarding our publisher tools. Publishers have many options, and they choose Google because our ad tech tools are simple, affordable, and effective.”

We will continue to report on this story as it develops.