US judge rejects bid to break up Google’s ad business

What the report says

A US federal judge has rejected the Justice Department’s request to force Google to sell parts of its advertising technology business, a major setback for antitrust enforcers seeking to curb the company’s dominance in digital advertising. Al Jazeera, citing AFP and Reuters, reported that Judge Leonie Brinkema in Alexandria, Virginia, declined to order a breakup of Google’s AdX ad exchange and instead accepted broader behavioral remedies.

The case centers on Google’s ad tech system, which helps website publishers sell ads and advertisers buy them in real-time auctions. The judge had previously found that Google illegally suppressed competition in the publisher ad server and ad exchange markets and tied those products together. However, the reasoning behind the latest ruling was sealed for 14 days, so the exact changes Google must make are not yet public. The two sides were given 30 days to propose a final judgment.

The DOJ had argued that Google could not be trusted to operate the exchange because of its market power, while Google said the government’s proposed fix was excessive and technically difficult. The company welcomed the ruling, saying the court had rejected a plan that would have broken apart tools used by small businesses. The DOJ said it remains pleased that the court ordered substantial relief and is considering next steps.

The decision is notable because it is the third recent case in which US antitrust authorities have failed to win a court-ordered breakup of a major tech company, highlighting the difficulty of using existing law to reshape Big Tech markets.