Google operates illegal monopolies over two separate markets related to digital advertising technology, a federal judge ruled on Thursday – dealing the Big Tech giant another historic antitrust loss that could result in a breakup of its online empire.
The bombshell ruling by US District Judge Leonie Brinkema in Virginia federal court determined that Google violated the Sherman Act by dominating the online publisher ad server market and the ad-exchange market that connects ad buyers to sellers.
“Google further entrenched its monopoly power by imposing anticompetitive practices on its customers and eliminating desirable product features,” Brinkema wrote.
“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,” the judge added.
Shares of Google parent Alphabet were off 1.2% at $153.64 in late-morning trades on Thursday.
The Justice Department has argued that the court should force Google to sell off its digital advertising products, especially the Google Ad Manager, which includes both its publisher ad server and its ad exchange.
A second trial phase will be held to “determine the appropriate remedies” to tackle Google’s monopoly, Brinkema said.
The ruling is another major legal blow for Google. Last year, a federal judge ruled in a separate case that Google has an illegal monopoly over the online search market.
The remedies phase for that trial is set to begin Monday, with prosecutors seeking a forced selloff of its Chrome web browser, among other fixes.
This is a breaking story. Check back for updates.
