Judge Orders Google to Retool Digital Ad Business, Not Break It Up

A federal judge in Virginia has ordered Google to retool its system powering its digital advertising business, rejecting a proposal from the US government to break up the company's monopoly.

The decision, handed down on September 2, 2026, by Judge Leonie Brinkema, is the second time this year that Google has been spared from a breakup sought by the Justice Department. The judge initially declined to impose a penalty that would have required Google to sell its Chrome web browser after declaring its search engine an illegal monopoly in 2024.

The court's ruling allows Google to continue operating its digital ad business, which generates nearly $400 billion in annual sales for Alphabet Inc., the company's parent. Critics of Big Tech condemned the decision, with Sacha Haworth, executive director of the Tech Oversight Project, stating that it sends the wrong message at the wrong time.

Google had argued that breaking up its digital ad business would be 'radical and unprecedented,' and the company released a statement expressing satisfaction with the court's ruling. Lee-Anne Mulholland, a Google executive, said the decision allows small businesses to continue using tools that help them reach new customers and grow.