- U.S. judge finds Google violated antitrust laws in digital advertising
- Decision may reshape Alphabet’s core advertising operations
What happened: Court ruling challenges Google’s market power
In a landmark decision in April 2025, a U.S. federal judge ruled that Google had unlawfully monopolised the digital advertising ecosystem. The ruling follows an extensive investigation led by the U.S. Department of Justice and several states, focusing on Google’s control over various segments of the ad tech stack. This includes ad exchanges, ad servers, and demand-side platforms—areas where the company allegedly acted to exclude competitors and consolidate its dominance.
The court’s judgement could lead to the divestiture of parts of Google’s advertising business, which generates the lion’s share of revenue for its parent company, Alphabet Inc.. Analysts estimate that Alphabet earns over $300 billion annually, with a significant portion derived from targeted digital ads. The judge’s opinion cited “structural remedies” as necessary for restoring competition, which may include breaking up business units or limiting integration between its ad platforms and search engine. The ruling comes amid a broader wave of global regulatory pressure on Big Tech firms.
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Why it is important
The significance of the court’s decision lies not only in its immediate impact on Google but also in the precedent it may set for the digital economy. If upheld and enforced, it will compel structural changes in how online advertising is bought and sold. This could reshape market dynamics for smaller ad tech companies, publishers, and advertisers who have long voiced concern over the lack of transparency and fairness in Google’s systems.
Furthermore, the case highlights the increasing willingness of regulators and courts to scrutinise vertically integrated business models that blend consumer-facing services with backend infrastructure. Similar cases are also progressing in the EU and the UK, where authorities have expressed interest in Google’s data collection and ad auction practices. This growing regulatory scrutiny reflects wider concerns about data concentration, algorithmic bias, and the long-term implications of unchecked market power in the tech sector.
