Google Avoids Ad Business Breakup but Faces New Antitrust Restrictions

Google will keep its advertising business after a U.S. federal judge rejected the government’s request for a breakup but ordered changes aimed at improving competition in the digital advertising market.

The ruling follows two major antitrust lawsuits brought by the U.S. Department of Justice against Google. One case focused on Google’s search business and search advertising, while another targeted its advertising technology operations.

Google Avoids Ad Business Breakup

Courts have previously ruled against Google in both cases. In the search antitrust case, a court found that Google had illegally maintained a monopoly in online search and search advertising, a decision discussed by the U.S. Department of Justice.

In the latest decision, federal judge Leonie M. Brinkema of the Eastern District of Virginia ruled that Google could keep its advertising business instead of being forced to sell parts of the company. However, Google will need to change certain business practices to improve opportunities for competitors.

The judge’s ruling did not immediately provide detailed instructions on how Google must adjust its operations. The full written decision will remain under seal temporarily while involved parties complete necessary redactions.

Antitrust Remedies Target Google’s Practices

The outcome follows a similar approach taken in Google’s search monopoly case, where the court rejected proposals to separate products such as Chrome and Android. Instead, Google was ordered to stop certain exclusive default-placement agreements and share some search data with competitors.

The legal arguments in Google’s antitrust cases have focused on how the company’s agreements and market position affected competition. Purdue Global Law School has also discussed a detailed review of the landmark proceedings.

Google described the latest ruling as a positive outcome. Lee-Anne Mulholland, Google’s vice president for regulatory affairs, said the company was pleased that the court rejected the government’s proposal to break apart tools used by businesses to reach customers.

How Google Built Its Advertising Position

The government’s ad-tech case focused on Google’s role across the digital advertising ecosystem. Regulators argued that Google strengthened its position through agreements that made its search engine the default option on devices worldwide.

Google also used revenue-sharing agreements with mobile carriers, allowing carriers to receive a portion of advertising revenue in exchange for keeping Google as the default search provider.

The broader antitrust battle has become one of the most significant technology-regulation cases in recent years, with courts examining how Google’s business practices have shaped competition in online markets.

Further reporting on the latest ad-tech remedies and the court’s decision was published by The New York Times. The legal filing and court documents related to the case provide additional details about the proceedings and arguments presented before the court.

The decision allows Google to continue operating its advertising business, but the company will face new restrictions aimed at addressing competition concerns raised during the antitrust trial. The original court filing is available in the case documents.