The USA Leaders
18 April 2025
Richmond – The era of unquestioned dominance for Google in online advertising and search may be drawing to a close. After years as a digital titan, Google is in legal trouble, facing intense scrutiny and significant lawsuits from powerful regulators in both the United States and the United Kingdom.
These aren’t minor skirmishes; they are high-stakes legal battles alleging illegal monopolistic practices that have distorted the online advertising market. With a critical U.S. federal court ruling already delivered and a massive UK class action underway, 2025 represents a potential turning point.
For general audiences and business readers alike, this isn’t just about one company – it’s a critical test for Big Tech regulation in the 21st century. As of now, let’s figure out why Google is in legal trouble.
U.S. Court Ruling: Google’s Ad Tech Power Deemed Unlawful
In April 2025, U.S. District Judge Leonie Brinkema delivered a sweeping 115-page decision stating that Google violated the Sherman Act by monopolizing critical online ad technologies. This includes tools used by publishers to offer ad space and platforms that manage how ads are bought and sold.
The Department of Justice, alongside 17 states, claims that Google’s tactics inflated ad prices and cornered the market, harming competitors and businesses. The remedy? A potential forced divestiture of Google’s ad network business—an aggressive structural solution that could reshape Google’s financial and operational landscape.
Although one claim regarding advertiser tools was dismissed, the ruling squarely supports the idea that Google unfairly controlled both sides of the advertising transaction. Google, naturally, plans to appeal.
The U.K. Lawsuit: Billions at Stake for Search Dominance
Across the Atlantic, Google’s search empire is also under legal fire. A £5 billion class-action lawsuit in the United Kingdom alleges Google leveraged exclusive deals with phone manufacturers and Apple to shut out rivals in search advertising.
The claim, filed by competition law expert Or Brook, argues that UK businesses have been forced to rely on Google Ads for visibility, paying higher prices due to a lack of alternatives. With Google controlling 90% of the UK’s search ad revenue, critics say this isn’t market leadership, it’s a monopoly.
Google calls the lawsuit speculative, asserting that businesses use its tools out of preference, not necessity. But the outcome could bring major reforms to how tech giants operate in Europe’s strict regulatory environment.
If Google Is Forced to Sell Its Ad Tech Arm: What Happens Next?
A forced breakup of Google’s advertising technology business would be historic. Although it contributes only about 4% to Google’s net revenue after acquisition costs, it plays a pivotal role in Google’s advertising ecosystem.
Here’s what it could mean:
- Financial Shifts: Google may need to rebalance investments in AI and cloud computing if ad tech profits decline.
- Operational Complexity: Selling off tools like AdX and Google Ad Manager would disrupt Google’s vertical integration in ad sales.
- Ecosystem Shake-Up: Smaller players may finally get breathing room, boosting innovation and lowering costs for publishers and advertisers.
- Market Valuation: The ad tech division could fetch up to $100 billion, attracting interest from telecoms, traditional media, or even Big Tech competitors.
- Antitrust Precedent: The divestiture would mark a turning point in U.S. tech regulation, signaling that regulators will pursue structural reforms not just fines.
AI and Cloud: Collateral Damage or Growth Opportunity?
Google’s other tech pillars, AI and cloud computing, are not untouched by this legal storm. Though the DOJ abandoned its demand for Google to divest its AI interests, the company must now notify authorities in advance about future AI deals.
That could slow acquisitions and increase regulatory risk around data-sharing in AI training models. So, the chances that Google is in legal trouble could pop up again soon!
In cloud computing, scrutiny is intensifying too. Past behavior, such as promoting Google Meet over Zoom, is being cited as anti-competitive. Combined with the $32 billion acquisition of cybersecurity firm Wiz, currently under review, Google faces pressure on all fronts.
If ad tech revenue shrinks, Google may pivot aggressively toward monetizing AI within its cloud services—but even that strategy risks fresh antitrust battles.
Google’s Legal Defense: Innovation or Isolation?
Google’s rebuttal rests on five pillars:
- Market Competition Exists: Google says the DOJ ignores rivals like Amazon, Meta, and Microsoft, which compete for the same ad dollars.
- Best-in-Class Tools: Google maintains its tools win on merit, not manipulation.
- Economic Efficiency: Google insists its ad platform boosts publisher revenue and provides security.
- Legal Rights: There’s no legal “duty to deal” with competitors, Google claims.
- Voluntary Use: Businesses and consumers choose Google because they want to, not because they have to.
However, courts are skeptical. Exclusive contracts, self-preferencing, and market dominance suggest otherwise. Google’s “voluntary choice” defense appears increasingly thin in light of the structural power it wields.
What does This Means for the Tech Industry and You?
For business leaders, investors, and consumers, this isn’t just about Google, it’s about the future of digital capitalism. If successful, the legal actions against Google could:
- Lower ad costs for businesses.
- Open new doors for ad tech startups.
- Break up the grip of tech monopolies.
- Redefine digital marketing and consumer targeting.
But it also raises real questions: Could aggressive regulation slow innovation? Will users lose out on seamless services? Or are we entering a new era of tech accountability?
Final Word: A Tipping Point in Tech Regulation?
Google is in legal trouble; this time, the trouble is deep, global, and strategic. Whether the company emerges leaner or more defiant, these legal battles will likely set the tone for Big Tech’s next decade.
Stay tuned because this story is far from over, and what happens next might just reshape the internet.
Also Read: AI Chipmakers in Trouble: Trade Limits to China Imposed! Who is on the Radar?
