A U.S. federal judge has ruled that Google, a subsidiary of Alphabet (GOOGL, Financial), abused its dominant position in two online advertising markets, violating American antitrust laws. This decision marks another antitrust defeat for Google following a previous loss in a search ad monopoly case. The judge stated that Google maintained control over the open web display ad server market and the ad exchange platform market by imposing restrictive policies on clients, hindering fair competition from other ad tech companies.
As a result of this ruling, Alphabet's stock price fell by approximately 1.5% in early trading, with intraday losses exceeding 3%. Google has yet to publicly respond to the decision. However, the ruling did not fully side with the U.S. government, as the judge concluded that the government failed to prove that the "open web display advertiser ad network" constitutes a separate and viable market, dismissing this particular charge.
Despite this, the court has mandated that Google and the government propose a "remedial plan" to address Google's misconduct in the advertising market. This ruling adds to Google's ongoing antitrust challenges, as its business model faces increased legal scrutiny amid intensified regulatory pressures on tech giants.
