US judge rejects bid to break up Google’s ad business

September 3, 2026 - 02:27

A federal judge has turned down the US government's request to force Google to sell off its advertising technology division, dealing a setback to regulators who argued the company's dominance in the online ad market required structural change.

The Justice Department had contended that Google could not be trusted to operate the digital advertising exchange fairly, claiming the company used its control over multiple layers of the ad-buying process to lock out rivals and inflate prices for publishers and advertisers. Prosecutors pushed for a breakup as the only reliable remedy, saying behavioral fixes would leave too much room for evasion.

But the court disagreed, finding that the government had not proven that divestiture was necessary or proportionate. The ruling noted that while Google holds significant market share, the company had presented evidence of intense competition from other platforms, including social media networks and retail media networks. The judge also pointed to the risk that breaking up the business could disrupt the broader digital economy without delivering clear benefits to consumers.

The decision is a major win for Google, which has faced a wave of antitrust scrutiny across the US and Europe. It also signals that courts may be hesitant to impose sweeping structural remedies in fast-moving technology markets, especially when the link between market power and consumer harm is not fully established.

The Justice Department has not said whether it will appeal. Legal experts expect the case to continue for months, as both sides weigh next steps. For now, Google's ad business remains intact, though the company still faces other pending lawsuits over search and app store practices.