Google Discovered to Operate Online Advertising Monopoly
A US district court has ruled that Google has breached American antitrust laws by illegally monopolizing the online advertising market, a decision that could compel the company to divest portions of its ad business. This ruling marks Google's...
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A US district court has ruled that Google has breached American antitrust laws by illegally monopolizing the online advertising market, a decision that could compel the company to divest portions of its ad business.
This ruling marks Google's second significant legal setback in under a year as US regulators intensify their efforts to limit Big Tech's influence.
On Thursday, US District Judge Leonie Brinkema in Virginia aligned with the Justice Department in a case concerning the $31 billion segment of Google’s advertising operations that serves as a bridge between website publishers and advertisers.
Brinkema concluded that by integrating its ad server with its publisher ad exchange, Google had “establish[ed] and protect[ed] its monopoly power in these two markets” for over ten years. In her detailed 115-page ruling, she stated that the company’s actions had deprived “rivals of the ability to compete.”
In response, Google announced plans to appeal the decision, contending that the government is attempting to dictate its business practices and that its perception of the market is fabricated and out of touch. The tech giant asserted that its services help both publishers and advertisers generate revenue.
“We won half of this case and we will appeal the other half,” said Lee-Anne Mulholland, Google’s vice president of regulatory affairs, highlighting that the court acknowledged their advertiser tools and acquisitions do not harm competition.
The recent ruling follows another antitrust setback for Google last year when a judge determined it held a monopoly in online search. This latest development is part of a wider effort to rein in Silicon Valley's power that began during Donald Trump's presidency.
Simultaneously, fellow tech company Meta is currently on trial concerning federal allegations of market power abuse through its strategy of acquiring potential competitors as part of a “buy-or-bury strategy.”
Experts suggest that this ruling may force Google to sell off assets or restructure parts of its operations. Additionally, in a separate case, a Washington judge is poised to evaluate the DOJ’s request for Google to divest its Chrome browser and mitigate its search dominance.
“This is a big win in the fight to break up Big Tech,” said US Senator Elizabeth Warren on Thursday, describing the ruling as “the result of years of work to rein in tech companies’ abuses.”
Frederick R Cook for TROIB News
This ruling marks Google's second significant legal setback in under a year as US regulators intensify their efforts to limit Big Tech's influence.
On Thursday, US District Judge Leonie Brinkema in Virginia aligned with the Justice Department in a case concerning the $31 billion segment of Google’s advertising operations that serves as a bridge between website publishers and advertisers.
Brinkema concluded that by integrating its ad server with its publisher ad exchange, Google had “establish[ed] and protect[ed] its monopoly power in these two markets” for over ten years. In her detailed 115-page ruling, she stated that the company’s actions had deprived “rivals of the ability to compete.”
In response, Google announced plans to appeal the decision, contending that the government is attempting to dictate its business practices and that its perception of the market is fabricated and out of touch. The tech giant asserted that its services help both publishers and advertisers generate revenue.
“We won half of this case and we will appeal the other half,” said Lee-Anne Mulholland, Google’s vice president of regulatory affairs, highlighting that the court acknowledged their advertiser tools and acquisitions do not harm competition.
The recent ruling follows another antitrust setback for Google last year when a judge determined it held a monopoly in online search. This latest development is part of a wider effort to rein in Silicon Valley's power that began during Donald Trump's presidency.
Simultaneously, fellow tech company Meta is currently on trial concerning federal allegations of market power abuse through its strategy of acquiring potential competitors as part of a “buy-or-bury strategy.”
Experts suggest that this ruling may force Google to sell off assets or restructure parts of its operations. Additionally, in a separate case, a Washington judge is poised to evaluate the DOJ’s request for Google to divest its Chrome browser and mitigate its search dominance.
“This is a big win in the fight to break up Big Tech,” said US Senator Elizabeth Warren on Thursday, describing the ruling as “the result of years of work to rein in tech companies’ abuses.”
Frederick R Cook for TROIB News
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