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TECH
Google Ads: Two lawsuits, one pattern—Monopoly without structural punishment
After years of litigation and two antitrust lawsuits filed by the U.S. Department of Justice, Google has managed to keep its digital advertising empire intact. U.S. District Judge Leonie M. Brinkema, of the Eastern District of Virginia, ruled this week that the company does not need to sell off its ad operations. Instead, it will be required to adjust its business practices to foster competition.
The outcome might look like a victory for the tech giant—and that is exactly how the company is publicly framing it. However, the ruling carries deeper implications for the online advertising ecosystem and the future of tech regulation in the United States.
The U.S. government filed two separate lawsuits against Google. The first, in 2020, focused on the company's dominance in search. The second, in 2023, specifically targeted its ad-tech business. In both cases, courts concluded that Google had illegally exercised monopoly power.
In 2024, a court ruled that the search operation and its associated ads constituted an illegal monopoly. The Department of Justice had even suggested that Google sell off the Chrome browser and the Android operating system. Judge Amit Mehta rejected that proposal in September 2025, allowing the company to retain both products. He did, however, order Google to terminate exclusivity agreements for default placements on devices and to share search data with competitors.
Now, the second case has followed the same script. Judge Brinkema acknowledged the illegal conduct but opted for operational remedies rather than structural ones. In practical terms, Google keeps all its pieces on the board; it simply needs to move some of them differently.
The ruling does not yet provide specific details on the changes Google will have to implement. The full text of the decision will remain under seal for 14 days, a period during which the parties can make necessary redactions. This means the market is still operating in the dark regarding the true scope of the new rules.
The online advertising ecosystem is notoriously opaque. Google dominates virtually the entire chain: from the tools publishers use to sell ad space to the systems advertisers use to buy it, as well as the platform connecting both sides. This vertical integration was precisely the focus of the government's accusations.
To put the scale in perspective: Google’s advertising revenue exceeded $237 billion in 2024, according to Alphabet’s data. This business accounts for more than 75% of the company's total revenue. Any adjustment to the rules of the game—even without a breakup—has the potential to redistribute billions within the ad market. As we have analyzed in articles regarding the regulatory impact on Big Tech, such decisions tend to reverberate throughout the entire sector.
Why US courts avoid breakups...The pattern emerging from these two cases is revealing. Courts are willing to declare monopolies illegal but shy away from dismantling the companies. This happens for both practical and political reasons.
On the practical side, separating integrated operations like Google’s would create immense technical challenges and could harm small advertisers who rely on the simplicity of the unified ecosystem. Google’s own defense team leveraged this argument: Lee-Anne Mulholland, the company’s vice president of regulatory affairs, stated that the decision protects "tools that help small businesses reach new customers."
On the political side, the Trump administration has historically signaled ambiguous stances regarding Big Tech regulation. Although the lawsuits were initiated under previous administrations, the appetite for enforcing aggressive remedies—such as breakups—appears limited. The prevailing trend is toward imposing behavioral changes rather than structural ones, a pattern we have already observed in other cases involving major technology companies.
For those following the technology sector, the message is clear: the risk of a Google breakup is off the table, at least in the short term. Alphabet shares are likely to respond positively to this reduction in regulatory uncertainty.
However, the situation is not entirely comfortable for the company. Once detailed, operational changes could open the door for competitors like The Trade Desk, Microsoft, and Amazon to gain market share in advertising. Smaller ad-tech companies could also benefit if Google is forced to open up parts of its infrastructure.
For the Brazilian market—where Google accounts for over 90% of searches, according to StatCounter data—the impact could be indirect yet significant. Changes to data and exclusivity policies in the US tend to be replicated globally. As we have previously explored in analyses regarding the impact of international regulations on emerging markets, decisions made in US courts often reshape the competitive landscape worldwide.
In short: Google has retained its structure but lost the narrative that there is no problem. Two separate courts have ruled that the company acted illegally. What remains to be seen is whether the imposed remedies will have enough teeth to alter the dynamics of a $600 billion annual market.
A money-printing machine that controls the game...According to the Department of Justice(EUA), websites display more than 13 billion online ads every day. Google holds the top spot in this sector—which reached $676.9 billion, according to 2024 projections by research firm eMarketer.
Of Alphabet’s nearly $260 billion in revenue in 2023, approximately $31.3 billion came from online advertising, according to the company's latest annual report.
U.S. government antitrust lawyers argue that Google—leveraging its position as an intermediary controlling the market from end to end—drives up ad prices while paying less to the websites that display them. According to the lawsuit, Google’s dominance across the technology stack gives it the power to force publishers and advertisers to use its suite of products, thereby generating monopoly profits: Google retains about $36 of every $100 spent on advertising through its tools.
“Website creators earn less, and advertisers pay more, than they would in a market where unfettered competitive pressure could discipline prices and lead to more innovative ad-tech tools—ultimately resulting in higher-quality, lower-cost transactions for market participants.”
The American giant has imposed its increasingly closed-off tools on the global digital advertising market. It derives the bulk of its profits from its dominant position...and a glaring lack of regulation.
While the name Google remains associated with its search engine, most users know its empire extends far beyond it: Gmail (a dominant messaging service), the video platform YouTube, Android (the operating system powering more than two out of every three smartphones), Maps, the world’s most widely used browser (Chrome), the payment service Google Pay, the Waze app, and so on.
This list of consumer-facing products is expanded by offerings aimed at businesses: Google Cloud, Wing (a drone delivery company), the autonomous driving firm Waymo (formerly Google Car), cybersecurity solutions, etc.
The range of services developed by Alphabet (the parent company encompassing all these entities) reflects a highly diversified digital enterprise built on numerous business lines. However, an examination of the company’s revenue streams reveals it to be, above all, an advertising giant; advertising accounts for 80% of its revenue and thus funds nearly all of Google’s services, including those offered for free.
The online advertising market is worth around $600 billion annually—a far from negligible sum. Google captures more than a third of this total—$220 billion. That figure is four times the value of Renault’s car sales (€52 billion) or nearly eight times the combined sales of Danone’s dairy products (€28 billion).
The global online advertising market operates as a duopoly—or even a triopoly, given the rise of Amazon. Meta, Facebook’s parent company, dominates social media advertising, while Google dominates across other media.
The “walled garden” strategy... A veritable industry has thus developed to implement all these technical solutions. It is estimated that 40% of advertiser spending is captured by these intermediaries.
“Google’s distinctive feature is that, in this market, it offers solutions across the entire value chain—serving both publishers and advertisers,” explains economist Rémi Deveaux. This strong position on third-party sites is coupled with a total monopoly over its own proprietary services.
“For programmatic advertising on third-party sites, Google can leverage tools from other providers, whereas it is much harder for others to leverage Google’s tools,” explains Théophile Megali, a research fellow in management at Paris Dauphine University. “If you want to advertise on YouTube or via Google Search, you must use the company’s own automation tools.”
This strategy—known as the “walled garden” and also seen with Facebook—allows Alphabet to offer “an end-to-end controlled automated purchasing process, enabling it to manage bidding, technical delivery, and audience segmentation, and ultimately to measure audience reach and campaign effectiveness. [...] In doing so, these platforms create a technical environment where data is generated and monetized in an integrated manner, driven by a logic of accumulation,” explains Théophile Megali in an article on the subject.
This results in a form of conflict of interest within the structure of the digital advertising market, as Google serves both the advertiser and the publisher—parties with divergent interests—while orchestrating the timing and space of the sale. All of this takes place amidst significant technical opacity.
“Regarding audience and performance measurement, exchanges between advertisers and platforms rely exclusively on tracking and impact data generated by the platforms themselves—data that cannot be verified by the buyers of the ad space. By ‘policing themselves,’ the platforms effectively act as both judge and jury,” note the authors of the IGF report.
Google was spared a breakup of its advertising business, but the judge ordered changes...The judge's full written decision will remain under seal for 14 days, allowing the parties involved to make necessary redactions. Her conclusion that Google acted illegally in maintaining its ad-tech business dates back to April of last year; this week's ruling addressed only the remedies.
It comes as no surprise that Google interpreted the outcome as a victory. Lee-Anne Mulholland, the company’s vice president of regulatory affairs, told TechCrunch: “We are very pleased that the court rejected the Department of Justice’s proposal for tools to break up [the business], which help small businesses reach new customers and grow.”
The online advertising ecosystem is known for its complexity and opacity, making it difficult for those unfamiliar with its mechanisms to understand. The government's main accusation against Google in the ad-tech case involved the tactics the company used to ensure its search engine was the default on devices worldwide, further strengthening its leadership in the advertising sector.
To achieve this, Google utilized exclusive agreements with device manufacturers, making it the default search engine across a large portion of the mobile market. The government also highlighted that the company entered into revenue-sharing agreements with mobile carriers—deals in which carriers received a share of advertising revenue in exchange for keeping Google as the default, thereby cementing its position as the dominant search engine in the mobile market.
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