Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Google’s Ad Tech Monopoly Ruled Illegal by U.S. Court
Antitrust | April 21, 2025
Image: Freepik/fabrikasimf
Google Hit With Second Antitrust Ruling as Court Calls Out Monopoly
On April 17, 2025, a federal judge ruled that key parts of Google's digital advertising ecosystem is a monopoly and it broke antitrust laws. It's the second time in less than a year that Google has been found guilty of abusing market power. The case was led by the U.S. Department of Justice (DOJ) and was backed by 17 states.
Judge Leonie Brinkema ruled (115 page PDF)that the company “willfully engaged” in tactics that harmed competition and distorted prices in a way that left publishers and consumers worse off while strengthening Google's dominance. Could this result in a court ordered break-up of Google's advertising tech empire?
How Google Controls the Ad Market
The case focused on how Google linked its publisher ad server (DFP) with its ad exchange (AdX), tools used by websites to sell advertising. The court found that its an unfair combination that Google could control and steer traffic away from competitors, giving it monopolistic control over the ad ecosystem.
See: Canada Sues Google Over Anti-Competitive Ad Practices
By 2022, Google held over 90% of the publisher ad server market and between 55-65% of the ad exchange space. In Q4 2024, its advertising business brought in $72.5 billion or 75% of Alphabet's total revenue (see Alphabet's Q4 2024 Earnings). These are astonishing figures and akin to how the internet is monetized.
So Now What?
The court has ordered both parties to schedule a hearing to submit potential remedies to resolve Google's antitrust case, including ordering the break-up and divestiture of AdX and DFP. The outcome will likely change how digital ads are bought and sold on the internet.
CNN article says Google will appeal. “We won half of this case and we will appeal the other half,” said Lee-Anne Mulholland, Google’s VP of regulatory affairs.
Not Google's Only Battle
Last August 2024, a separate court ruled that Google illegally monopolized search by paying Apple over $10 billion a year to be the default engine on iPhones. The DOJ reportedly wants Google to sell Chrome and potentially it's Android operating system.
Google is also facing broad existential threats from the rise of generative AI platforms like OpenAI's ChatGPT that are upending traditional search by fundamentally changing how people access information.
Let's not forget the added pressures that President Trump' sweeping tariffs on global tech are having on Google's revenue growth. Combined, Google's dominance is now in flux with Alphabet's stock falling more than 1% after the latest ruling and down 20% year to date.
What This Means for Canada
Canada’s Competition Bureau is watching closely, and in November 2024 filed its own antitrust suit against Google, claiming the company used similar tactics in Canada’s digital advertising market.
See: Trump’s Inauguration Marks New Chapter for Tech Giants
According to Commissioner Matthew Boswell, Google’s ad tech practices prioritized its own products in ad space auctions and restricted publishers from working freely with other platforms. Similar to the U.S. case, Canada seeks a forced sale of ad tech tools, financial penalties, and an end to exclusionary behaviour.
If the Tribunal agrees, Google could face fines up to 3% of its global revenues ~$12 billion CAD. These cases can take several years to conclude but Canadian regulators have been building their case for almost a decade, and the U.S. ruling may accelerate momentum, as it provides a strong legal precedent.
One Tech Giant Wobbling. Who’s Next?
U.S. regulators are not just going after Google but also currently pursuing Meta, Amazon and Apple for various antitrust violations.
Apr 2025: Meta for acquiring Instagram and WhatsApp to eliminate rivals.
Mar 2024: Apple for using the iPhone ecosystem to block competitors in messaging, digital wallets, and more.
Nov 2023: Amazon for allegedly punishing third party sellers and distorting its own marketplace.
Conclusion
Big Tech is being forced to answer how it gained and uses power, with Google now on the chopping block who may now face a court ordered breakup. Canada and other countries are following, so this antitrust case isn't about one company but a movement and will impact who controls the infrastructure of the internet.
TedX: This is what a digital coup looks like
It doesn't matter if you're in advertising or not. It affects anyone who uses the internet and the outcome will change how online markets work, who gets to participate and compete and the future of digital power.
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