A judge won’t make Google sell its ad business
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It turns out that “we’re not breaking up!” banner was a good investment. Despite US District Judge Leonie Brinkema agreeing with the Department of Justice last year that Google’s ad business acted as an illegal monopoly, she ruled yesterday that Google won’t be forced to sell it off. This marks the second time Google has come through monopoly accusations from the government without having to lop off any of its business arms, as courts seem wary of breaking up tech giants.
In an abbreviated opinion, Brinkema officially rejected the DOJ’s request to splinter the company. However, the judge accepted other proposals to curb Google’s control over how publishers use its ad tech. Her full ruling won’t be available for two weeks once confidential information is redacted.
ICYMI: The DOJ and 17 states sued Google three years ago, alleging that the company’s control of its ad server (what publishers use to run ads) being tied directly to its ad exchange (the marketplace used to buy and sell ads) was anti-competitive. The DOJ claimed Google’s ad server held 91% of the global market share. Last year, Brinkema ruled in favor of the DOJ. But yesterday, she refused to order the sale of the exchange.
The courts have been letting Big Tech stay big
Even in its shortened form, yesterday’s decision mirrors other judges’ concerns in Big Tech antitrust cases:
- Last year, a district judge said Google was illegally dominating online search, but ruled that it didn’t have to sell Chrome because AI would probably disrupt search anyway.
- Meta also avoided a breakup when a court found that the FTC was right that the company had built an illegal social networking monopoly, but TikTok’s subsequent popularity changed that view.
Looking ahead…the recent spate of Big Tech punishments with no teeth coming from US courts doesn’t bode well for upcoming government antitrust trials against Amazon and Apple.
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