In a striking blow to Silicon Valley’s towering titan, a federal judge has ruled that Google illegally maintained a monopoly in the digital advertising technology market. This decision closes a two-year legal pursuit led by the U.S. Department of Justice and eight states, all accusing Google of crushing fair competition in the ad space.

The court is now faced with two roads ahead:

A Potential Breakup – Google could be ordered to divest parts of its ad empire, including essential tools like Google Ad Manager, AdX, and DoubleClick for Publishers, which many publishers rely on.

Strict Behavioral Controls – Alternatively, Google might retain its ad tools but would be shackled by regulations preventing favoritism, especially where its own ad exchange competes in auctions.

Google, unsurprisingly, isn’t taking this ruling lying down. Vice President Lee-Anne Mulholland stated the company will appeal the decision, especially the part targeting its publisher tools. Google argues its tools win favor not by force, but by being user-friendly and efficient.

The lawsuit stems from allegations that Google’s historic acquisitions—like DoubleClick (2008) and AdMeld (2011)—gave it an unfair grip on the market, letting it control ad prices and siphon more revenue from publishers.

This case is just one piece of a larger legal chess match. Another case, regarding Google’s dominance in search, is also unfolding, with judgment expected by mid-2025. If the winds of the law continue to blow this way, we may witness a transformation in how online ads are governed, and a possible reshaping of one of tech’s most powerful empires.