Google's Ad Business Spared Breakup in US Court

In a significant ruling, a US federal court has decided against breaking up Google's display advertising business. Judge Leonie Brinkema of the United States District Court for the Eastern District of Virginia rejected proposals that would have forced Google to sell off substantial portions of its operations in this sector. Instead, the court has accepted modified behavioral remedies that will dictate Google's future conduct in the market.

The case stemmed from a finding in April that Google had violated the Sherman Act through anticompetitive practices in the programmatic advertising system. The original lawsuit, filed in January 2023 by then-U.S. Attorney General Merrick Garland and eight states, sought a divestiture of Google's Ad Manager suite. Google had proposed its own conduct remedies, including making real-time bid amounts available to rivals and modifying pricing rules.

This judicial decision marks the second instance where a US court has found Google in violation of antitrust laws but has opted for behavioral restrictions over structural remedies. Previously, a different judge imposed limits on Google's search monopoly, requiring it to share search-index data at cost, rather than forcing a sale of its Chrome browser. The enforcement and compliance with behavioral remedies often present challenges, contrasting with the finality of structural solutions.

Meanwhile, the European Commission, which is pursuing its own case against Google's display ad practices, maintains a preference for a structural remedy. Following its own finding of abuse of power in June 2023, the EC suggested a forced breakup as the most effective way for Google to resolve its conflicts of interest, a stance reiterated even after imposing a €2.95 billion fine last September.