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US Judge Rules Alphabet’s Google Operates Illegal Ad Monopoly


US Judge Rules Alphabet’s Google Operates Illegal Ad Monopoly

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A US Judge has ruled that Alphabet’s Google operates an illegal ad tech monopoly. The decision is a big win for prosecutors looking to break up Alphabet’s advertising products.

U.S. District Judge Leonie Brinkema in Alexandria, Virginia, ruled that Google unlawfully monopolized markets for publisher ad servers and the market for ad exchanges, which sit between buyers and sellers. Antitrust enforcers failed to show the company had a monopoly in advertising ad networks, the judge said Thursday. If it doesn’t sell its Google Chrome browser, Alphabet will already face several legal threats.

The Department of Justice put in a request for Google to sell its browser, and a Washington Judge will hold a trial next week for the request. According to prosecutors, Google used classic monopoly-building tactics of eliminating competitors through acquisitions, locking customers into using its products, and controlling how transactions occurred in the online ad market.

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Google may sell its Chrome browser for up to $20 billion if a judge forces the transaction, according to a Bloomberg valuation. Per Bloomberg analyst Mandeep Singh, Google Chrome’s sale would be worth “at least $15-$20 billion.” The internet browser averages roughly 3 billion active users per month, making it one of the most popular web browsers in the world. This is one of Alphabet’s biggest streams of income, and the forced sale would be a huge blow to Google and its profits.

Alphabet (GOOGL) stock is down 2% on Thursday following the judge’s ruling.

Read the article at Watcher.Guru

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