Explainer-What does ruling on Google’s illegal ad tech monopoly mean?
From Yahoo Finance.: 2025-04-17 15:28:00
A U.S. judge’s ruling finds Google guilty of illegal monopolies in ad technology, potentially leading to a breakup. The case focuses on Google Network, an ad division managing digital ad space auctions. Google’s dominance harms competition, per prosecutors. Ads make up 75% of Alphabet’s revenue, with Network contributing 8.7%.
The judge will now hear arguments on potential remedies. The Justice Department seeks divestiture of Google Ad Manager, a platform within Network. If Google loses, a Cornell Law professor estimates a revenue drop of less than 10%. Google previously offered ad tech divestiture to European regulators, which was rejected by publishers.
Potential ripple effects of court-ordered remedies could impact ad tech suite and make it easier for advertisers to switch platforms. Political support for the case from Biden and Trump administrations shows bipartisan cooperation against Big Tech. Another antitrust case on Google’s search technology, with higher stakes, continues separately.
Google plans to appeal the ruling, with the next step being the judge determining remedies. The legal process could take years to conclude, unless a settlement is reached. The implications of this case are significant, but the battle is far from over.
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