Google Escapes Ad Tech Breakup as Judge Rejects DOJ Proposal
U.S. Judge Leonie Brinkema in Alexandria, Virginia, refused to force Alphabet's Google to sell its AdX advertising technology business, marking the third time a Big Tech antitrust case has ended in defeat for U.S. enforcers. The judge declined to make Google sell AdX, where publishers pay Google a 20% fee to sell ads in auctions that happen instantly when users load websites.
The Department of Justice had argued Google could not be trusted to run the online advertising exchange after Brinkema ruled that Google had illegally quashed competition. However, she accepted behavioral remedies, including providing real-time bid access to competitors. A detailed ruling will be released in 14 days to give time to redact confidential information.
Google had proposed fixes, and executive Lee-Anne Mulholland said the company was 'very pleased' with the court decision. The DOJ is 'pleased that the court ordered substantial relief,' but it's evaluating appropriate next steps. Google argued a breakup would be technically difficult and result in a long transition that would hurt customers.
The ruling fueled questions about whether courts are up to the task of checking the industry's unprecedented power over the U.S. economy, and the fate of a crackdown that started during President Donald Trump's first term. Cases against Amazon and Apple involving smartphone and online retail markets have not yet gone to trial.