Google doesn't have to sell off its ad tech business
What's the story
A US District Court judge has rejected the Justice Department's request for Alphabet Inc. to sell off its advertising exchange, AdX. Instead, Judge Leonie Brinkema has asked Google to make its ad tech tools compatible with those of competitors. The ruling comes as a major victory for the tech giant, which was fighting against a second attempt to force a breakup of its business.
Court ruling
Judge's ruling issued under seal
Judge Brinkema's ruling was issued under seal, along with a brief order denying the Justice Department's request to force the sale of Google's AdX.
Instead, she ordered behavioral changes to Google's business without detailing what these changes would be.
The redacted decision will be released later this month.
Google VP of regulatory affairs Lee-Anne Mulholland welcomed the decision, saying "We're very pleased the Court rejected DOJ's proposal to break apart tools that help small businesses reach new customers and grow."
Court proceedings
DOJ satisfied with court's decision
The judge has ordered the parties involved to meet, discuss, and file a joint final judgment proposal within 30 days. If they can't agree on differences, their respective proposals should be included.
The Justice Department expressed satisfaction with the court's decision to order substantial relief in this case.
In a post on X, Associate Attorney General Stanley Woodward, said "The department will continue to fight for fair competition."
Business impact
Google's dominance in advertising business
Google's US ad operations are projected to generate $101.2 billion in 2026, with search ads accounting for about $83.8 billion and display advertising making up the rest.
The company sits between publishers selling display space and advertisers bidding on it, giving it a powerful position in how prices are set and which ads appear.
Regulators have long argued that controlling both the dominant publisher ad server and one of the largest ad exchanges allowed Google to advantage its own systems.
Market impact
Potential appeal and ongoing scrutiny for Google
The Justice Department could still appeal the ruling, while Google remains under scrutiny from state attorneys general, private plaintiffs, and European regulators over its advertising practices.
The pace and scope of Google's implementation will likely determine whether the remedy produces meaningful competitive shifts in the display ad market.
This decision marks a significant moment in Google's ongoing battle with antitrust regulators over its business practices.