U.S. Judge Rules Google Holds Illegal Monopoly in Ad Tech: What’s Next for Alphabet?:

A U.S. judge’s decision stating that Google has illegal monopolies over its digital advertising operations has created the possibility for federal prosecutors to seek changes at Google’s core relfae. This is not connected to the other lawsuits filed against Google for antitrust violations in its search operations.

The dispute centers on the Google’s Network, which manages the auction for advertising slots. The Department of Justice aleged that Google had too much power control over this system and was using it to stifle competition and disadvantage publishers such as news websites. Despite regulating constraints like no imposed restrictions competition limits competition Google’s claim of having reasonable technological advancement over competition was dismissed.

Why This Matters to Google and Alphabet

Advertising constitutes the largest segment of revenue for Alphabet, amounting to 75% of the company’s total $350.02 billion earnings in 2024. While Google’s Network division contributes to only 8.7% of total revenue received this ruling not only impacts the division but hints towards danger for the company as a whole.

Google Ad Manager, one of the essential products of the company, may be facing these legal proceedings. Even if it only represents 4.1% of the global revenue for the company, the DOJ is adamant in pursuing claims that would result in forced sale of parts of the company. Up to three of these allegations from decades-old scrutiny would be invalidated based on information that wasn’t made public at the time court documents were made available.

What Follows in the Lawful Framework of the Issue
In the aftermath of the monopoly ruling, the judge will now look into the suitable remedies. Experts of law presume that Google might need to divest some portions of its display advertising unit. In fact, Google has already attempted to sell its advertising exchange within Ad Manager to European regulators, but European publishers blocked the attempt.

Alphabet has since stated that they intend to appeal the ruling. Any final resolution, aside from a settlement, might take years to accomplish.

Effect on the Ad Industry On a Wider Scale
The ruling stands to impact how googles integrates other components of their adtechand ecosystem. Enforc, the decision may lead to an increase in competition in the ad market as it may be easier for advertisers and publishers to change systems and platforms.

Moreover, the support from both the Biden and Trump administrations underscores the peculiar unity in American politics when it comes to initiatives aimed at Big Tech.

While this case deals with the issue of advertisement, there is an ongoing antitrust case that targets Google's supremacy over the search engines market, which places more threat to the company's core business.