A federal judge ruled on Wednesday that Google must alter its business practices to address its dominant position in the online advertising technology market but stopped short of ordering a breakup of the company’s ad tech operations. The decision, issued by Judge Leonie M. Brinkema of the U.S. District Court for the Eastern District of Virginia, comes after a 2023 trial in which the U.S. Department of Justice (DOJ) accused Google of unlawfully maintaining a monopoly over the complex system that facilitates the placement of ads across websites.
The government’s lawsuit focused on Google’s control of multiple components in the advertising ecosystem, including the software publishers use to sell ad space, tools for advertisers to bid on that space, and the technology connecting buyers and sellers in rapid auctions. The DOJ argued that Google leveraged this dominance to extract higher fees than would prevail in a competitive market and sought structural remedies, including the divestiture of key parts of the ad tech business such as the ad exchange.
Google contended that its services compete with various other advertising channels, such as apps like TikTok and connected television platforms, and challenged the government’s legal basis by citing Supreme Court precedents that limit antitrust remedies in complex, two-sided markets. The company also warned that a breakup could disrupt services relied upon by small publishers to connect with advertisers.
Judge Brinkema agreed with the government that Google held a monopoly over publisher-facing tools and the technologies linking advertisers with publishers but found insufficient evidence to conclude that Google unlawfully monopolized advertiser-facing tools. She ruled against the DOJ’s request for a structural breakup and instead mandated that Google implement business practice changes to foster competition. While the court granted "most" of the proposed remedies by both parties, it rejected the demand for Google to publicly disclose the source code behind its ad auctions. The final ruling remains sealed pending the redaction of confidential information, after which it will be made public.
Analysts suggest the decision will have a limited impact on Google’s broader business. The ad tech segment generated approximately $30 billion in revenue in 2023, about 8 percent of Alphabet’s total, but has seen declining earnings for 16 consecutive quarters and constitutes a small portion of overall profits. Some experts view ad tech as an increasingly marginal part of Google’s strategy, which is shifting focus toward proprietary advertising and integrating artificial intelligence into its products.
A spokesperson for Google expressed satisfaction with the ruling, stating the company was “very pleased” the court declined the DOJ’s breakup proposal, emphasizing that the tools at issue help small businesses reach customers. The Justice Department said it was “pleased” with the court’s order for “substantial relief” and is currently evaluating potential next steps.
The decision reflects broader judicial caution in dismantling large technology platforms despite findings of monopolistic conduct. It follows other recent rulings—including one against Google’s search business—that mandated relatively modest structural reforms. The outcome also comes as the federal government pursues ongoing antitrust litigation against other major tech companies such as Amazon and Apple.