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The Tech Diff > Blog > Technology > Google Avoids Ad-Business Breakup, Must Change Operating Practices
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Google Avoids Ad-Business Breakup, Must Change Operating Practices

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Last updated: September 2, 2026 10:22 pm
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Justice Department’s Ongoing Battle Against Google’s Advertising Monopoly

The Justice Department has been engaged in a long-running effort to dismantle Google’s extensive advertising empire, aiming to curb its perceived monopoly over the digital advertising market. This endeavor has manifested in two significant antitrust lawsuits: the first, initiated in 2020, emphasized Google’s controlling presence in the search market, while the second, filed in 2023, zeroed in on the intricacies of Google’s ad-technology operations. Both lawsuits contend that the sheer dominance of Google in the digital advertising landscape constitutes illegal monopolistic behavior.

Contents
Justice Department’s Ongoing Battle Against Google’s Advertising MonopolyCourt Rulings Favoring Government Antitrust ClaimsPotential Breakup of Google’s Business Operations: Court’s DecisionRecent Developments in the Ad-Tech CaseThe Complexity of Google’s Advertising Dominance

Court Rulings Favoring Government Antitrust Claims

In a series of rulings, courts have predominantly supported the government’s stance. Notably, in 2024, a ruling declared that Google’s search operations—including its lucrative search-advertising segment—were deemed an illegal monopoly. The court asserted that Google had “exercised its monopoly power,” enabling it to control the search industry and its associated advertising ecosystems. This strong stand was reiterated the following April in a separate verdict focused strictly on Google’s ad-tech business.

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Potential Breakup of Google’s Business Operations: Court’s Decision

In the aftermath of the 2024 decision, Justice Department officials seriously explored various avenues for restructuring Google’s search operations. Suggestions included divesting its widely used Chrome browser and the Android operating system. However, in a ruling from September 2025, District Judge Amit Mehta dismissed these divestiture strategies, permitting Google to retain both Chrome and Android while still imposing requirements to abolish exclusive default-placement agreements and share specific search data with its competitors. These remedies are currently under appeal by Google.

Recent Developments in the Ad-Tech Case

Most recently, on a Wednesday in September 2026, Judge Leonie M. Brinkema of the Eastern District of Virginia upheld that Google would maintain its advertising business, contrary to expectations of a forced sale. Instead of disposing of its assets, Google will be mandated to modify its business practices to allow for fairer competition. Although the specifics of how these measures will be implemented remain unclear, this decision follows a previous ruling, which identified Google’s actions in the ad-tech sphere as illegal.

Following the decision, Google heralded the outcome as a victory. Lee-Anne Mulholland, Google’s Vice President for Regulatory Affairs, expressed satisfaction regarding the court’s rejection of proposals that could fragment the company’s tools, asserting their essential role in supporting small businesses.

The Complexity of Google’s Advertising Dominance

The online advertising ecosystem is notoriously opaque, presenting unique challenges for stakeholders unfamiliar with its complexity. Central to the government’s case were Google’s strategies to maintain its status as the default search engine on numerous devices. These strategies included exclusive agreements with device manufacturers, effectively ensuring that Google secured default status across large portions of the mobile market. Additionally, arrangements with mobile carriers enabled Google to reach revenue-sharing agreements, where carriers received a commission on ad revenue, further solidifying Google’s dominant position in mobile search.

For further detailed insights into these legal proceedings and their implications, you can view the full article Here.

Image Credit: techcrunch.com

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