Google's Ad Monopoly Ruling: What Lies Ahead?

A U.S. judge's ruling determined that Google maintains illegal monopolies in ad technology. The antitrust case is not connected to Google’s search operations but targets its ad-tech business. The future could involve divestitures and appeals as U.S. prosecutors seek measures against Google’s ad dominance.

In a significant legal development, a U.S. judge has ruled that Google possesses illegal monopolies in the realm of ad technology. This decision paves the way for potential actions, including a breakup, by U.S. prosecutors. The focus of this antitrust case lies not within Google's integral search operations but specifically involves its ad-tech division, responsible for managing its auction-style advertising system.

Google's ad business, a critical revenue stream for Alphabet, the parent company, accounted for 75% of its 2024 revenue. Though the Google Network division constituted only a fraction of this, the judge contends that its power unlawfully stymies competition, adversely affecting web publishers like news outlets. Federal prosecutors propose remedies such as the divestiture of the Google Ad Manager platform.

Despite the ruling, Google intends to appeal, prolonging the final outcome. Nonetheless, this case underscores the bipartisan political will across administrations to regulate Big Tech. The decision may have significant repercussions on Google's operations and influence future antitrust litigations, although the search technology antitrust case looms as a larger threat.

(With inputs from agencies.)