Google Avoids Breakup of Ad Tech Business in Antitrust Ruling

Google avoided a breakup of its massive advertising technology business Wednesday after a federal judge rejected the Justice Department’s push to force the tech giant to sell off a key part of an operation that helped power digital advertising across the web. In a ruling obtained and viewed by TheWrap, U.S. District Judge Leonie Brinkema instead ordered Google to change some of its business practices to address its illegal monopoly in parts of the ad-tech market. The specifics of the changes were not immediately made public. The decision marked a major win for Google and preserved an advertising operation that sat at the center of the digital media economy, connecting publishers looking to sell advertising space with marketers trying to reach consumers online. The Justice Department had sought a more dramatic remedy after Brinkema ruled last year that Google illegally maintained monopolies over its publisher ad server and ad exchange. Government lawyers argued that changing Google’s behavior would not be enough to restore competition and pushed the court to force the company to sell its AdX advertising exchange, which facilitated transactions between buyers and sellers of digital advertising. The DOJ also sought to require Google to make public some of the computer code behind its publisher tools and asked Brinkema to retain the option of ordering additional divestitures if competition did not improve. Google argued that breaking up the business would be complicated and could hurt smaller publishers that relied on the company’s technology and scale to sell advertising. Brinkema ultimately stopped short of a breakup. According to an entry on the court docket, she granted “most” of the changes to Google’s business practices proposed by the Justice Department and Google. “The Antitrust Division is pleased that the court ordered substantial relief in the Google Ad Tech case,” a DOJ spokesperson told TheWrap. “We are one step closer to restoring competition and bringing relief for the American people in online advertising markets. The Department is evaluating appropriate next steps.” “We’re very pleased the Court rejected the DOJ’s proposal to break apart tools that help small businesses reach new customers and grow,” Google’s Lee-Anne Mulholland said in a statement to Reuters. The ruling came as publishers continue to grapple with a digital advertising market heavily influenced by Google. TheWrap previously reported that media companies had become heavily dependent on Google’s one-stop network of advertising tools, with the company operating on multiple sides of the digital ad market. The concerns have also spilled into the entertainment media business. Penske Media, the publisher of Variety, Rolling Stone and The Hollywood Reporter, sued Google in January, accusing the company of using its dominance to manipulate digital ad auctions, suppress prices paid to publishers and shut out competitors. Google denied the allegations. The decision also marked the second time Google avoided a major breakup after being found to have operated an illegal monopoly. A separate federal judge previously found that the company maintained a monopoly in online search but declined to order significant structural changes to its business. Representatives for Google did not immediately respond to TheWrap’s request for comment.