US Judge Rejects Google Ad Business Breakup Demand

Google, a unit of Alphabet, has avoided an order to split off its ad technology business, marking the third time in recent years that US antitrust enforcers have failed in their attempts to force a tech giant to break up.

Judge Leonie Brinkema in Alexandria, Virginia, on Wednesday refused to require Google to sell AdX – the platform where publishers pay a 20% fee to sell ads in real-time auctions when users visit websites.

The US Justice Department had argued that Google could not be trusted to operate an online ad exchange after Judge Brinkema ruled last year that Google had illegally monopolized the sector and suppressed competition. However, instead of demanding a breakup, the judge accepted remedies related to business conduct.

The detailed reasons for the ruling were not released immediately. The verdict is sealed for 14 days, meaning specific terms about how Google must alter its ad business remain under wraps. The two parties have 30 days to file a joint proposed judgment.

The case focused on Google's ad tech “stack” – the set of tools publishers use to sell ads and advertisers use to buy them. In April 2025, Judge Brinkema ruled that Google had intentionally monopolized both the publisher ad server market and the ad exchange market, and also violated the law by tying these two products together. Google has announced it will appeal this liability ruling.

The US government accused Google of controlling multiple parts of the digital advertising market simultaneously, including both the platform publishers use to sell ads and the exchange where transactions occur – while also holding vast demand from advertisers. Prosecutors had proposed forcing Google to sell AdX and open-source its key auction technology.

For its part, Google described the proposed remedies as an overreach by the government, harming publishers, advertisers, and consumers. The company also argued that splitting off the service was technically impossible. AdX is only a small part of Google's business. Google shares gave up some gains after the ruling but closed up 0.6%.

Google welcomed the decision. “We are very pleased that the court rejected the Justice Department's proposal to break up the tools that help small businesses reach new customers and grow,” said Lee-Anne Mulholland, Google's vice president for regulatory affairs. The Justice Department said it was “pleased that the court imposed significant remedies,” and stated on X that: “We are one step closer to restoring competition and delivering relief to the American people in the online advertising market. The Department is evaluating the appropriate next steps.”

Though Google may have to change some business practices, this ruling is the third time in a row that judges have rejected antitrust enforcers' proposals to break up a tech giant. Sacha Haworth, executive director of The Tech Oversight Project, said the rulings “prove that courts alone cannot save us from Big Tech.” The advocacy group has proposed legislation to restore competition in digital advertising.

Previously, a federal judge in Washington last year rejected the Federal Trade Commission's (FTC) request to force Meta Platforms to sell Instagram and WhatsApp, saying the agency had not shown Meta had a monopoly in a social media landscape that has shifted dramatically since the lawsuit was filed in 2020. The FTC has appealed. Similarly, another Washington judge, who had ruled that Google held an illegal monopoly in online search, also rejected the Justice Department's proposal to force Google to sell the Chrome browser, citing growing competition from generative artificial intelligence companies such as OpenAI's ChatGPT.