Google Avoids Forced Breakup of Its Advertising Business
Google has avoided a court order that could have forced it to sell its AdX advertising exchange, marking another setback for U.S. efforts to break up major technology companies.
A federal judge rejected the U.S. Justice Department’s proposal for Google to sell the business, even though the court had previously ruled that Google had unlawfully suppressed competition in the advertising-technology market.
Instead of forcing a sale, the judge accepted behavioural remedies that would require Google to make changes to its business practices.
One proposed change includes giving competitors greater access to real-time bidding information.
Google had argued that selling AdX would be disruptive and could harm customers.
The company said a complex transition could damage the wider digital-advertising ecosystem.
The ruling is significant because it marks the third recent failed attempt by U.S. antitrust authorities to force a structural breakup of a major technology company.
The case also raises broader questions about how governments can regulate the enormous market power of Big Tech companies.
Google still faces regulatory scrutiny, but the decision removes the immediate threat of losing an important part of its advertising infrastructure.
Source: Reuters
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