Google has been ordered to make major changes to its advertising business to improve competition, but it will not be forced to break up its ad-tech operations. This decision comes after U.S. District Judge Leonie Brinkema ruled that while Google’s practices have raised antitrust concerns, a full breakup of its ad-tech business is not necessary. Instead, the judge emphasized that structural changes to the company’s business model would be a more suitable remedy to address monopoly concerns.
The U.S. Department of Justice (DOJ) had previously accused Google of unfair practices related to its AdX platform, a system used by publishers to sell ad space. One of the issues was that publishers were required to pay a 20% fee to use AdX, which the DOJ argued gave Google an unfair advantage. However, Judge Brinkema found that modifying how Google operates its ad business would be more effective than splitting it apart.
Key changes required by the court include disconnecting Google’s publisher ad server from AdX and ensuring that websites using the ad server are not forced to use AdX as well. These adjustments aim to promote interoperability—meaning different platforms can work together more seamlessly—and to restore competition in the ad-tech market. The judge hopes these steps will prevent Google from favoring its own tools over those of competitors.
The court’s order includes six years of monitoring to ensure Google complies with these changes. During this time, the DOJ hopes the market will become more competitive, potentially reducing the need for further legal action. However, the DOJ had originally requested 15 years of oversight. Google has expressed disagreement with the ruling and plans to appeal, while the DOJ called the outcome a “significant victory” for competition.
Advertising revenue accounted for $294.7 billion of Google’s total revenue in the most recent fiscal year, making up about 73% of its income. This is a slight decrease from the previous two years, when advertising made up 76% and 77% of total revenue, respectively.
Google Ordered to Improve Ads Business Interoperability, Avoids Breakup
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