A recent U.S. court ruling has found that Google holds illegal monopolies in digital advertising technology, potentially setting the stage for significant changes in the company’s ad business. While this case does not involve Google’s core search business, which has its own ongoing antitrust scrutiny, it focuses on Google Network a division responsible for the auction-style system that determines which ads appear where and at what cost across the internet.
Federal prosecutors argued that Google’s dominance in this space stifled competition and harmed web publishers, particularly news outlets that rely on ad revenue. The court sided with the Justice Department, concluding that Google’s control over ad tech unfairly hindered competitors. In response, Google maintained that it outperformed rivals through superior technology, not anti-competitive practices.
Advertising remains a central pillar of Alphabet’s (Google’s parent company) revenue, accounting for roughly 75% of its $350.02 billion in 2024 earnings. However, Google Network, which includes Ad Manager, represents a smaller slice just 8.7% of total revenue. Despite this, the ruling has significant implications for the company, especially if the U.S. government pushes for a breakup or major restructuring of Google’s ad business.
The next phase of the legal proceedings will focus on determining appropriate remedies. The Justice Department has already suggested that Google should divest parts of its ad tech empire, specifically the Ad Manager platform. Ad Manager represented 4.1% of Alphabet’s overall revenue in 2020, a figure that highlights the platform’s importance to the company’s advertising operations.
Experts predict that any forced divestiture could result in a modest revenue decline for Google less than 10% but the impact on the company’s competitive edge could be far-reaching. In the past, Google has signaled willingness to sell parts of its ad tech business, as evidenced by an earlier attempt to appease European regulators with a proposal to sell its advertising exchange.
The ruling marks a significant step in the U.S. government’s ongoing effort to rein in the power of Big Tech and could lead to more drastic changes within Google’s ad technology infrastructure.
