TLDR
- A federal judge ruled Google must ease its online ad auction rules and appoint an internal antitrust compliance monitor for six years.
- The judge rejected the DOJ’s demand to break up Google’s advertising technology business.
- GOOGL stock gained 0.70% in after-hours trading following the ruling.
- Google will appeal part of the decision related to its Google Ad Manager publishing tool.
- Wall Street maintains a Strong Buy rating on GOOGL with an average price target of $427.08.
Alphabet’s GOOGL stock edged up 0.70% in after-hours trading on Wednesday after a federal judge stopped short of ordering a breakup of Google’s advertising technology business.
U.S. District Judge Leonie Brinkema issued a 106-page decision ordering Google to loosen its ad auction rules and appoint an internal antitrust compliance monitor. The remedies will stay in place for six years.
The ruling comes about two weeks after Brinkema rejected the Department of Justice’s push to force Google to sell off its ad tech operations entirely.
The case dates back to January 2023, when the DOJ and several states sued Google over its control of digital advertising tools. In April 2025, Brinkema found Google had unlawfully monopolized publisher ad servers and ad exchanges.
The judge said the new rules would be “sufficient to effectively pry open to competition the ad tech markets that were injured by Google’s unlawful conduct.”
Google generated $81.6 billion in ad revenue in Q2 2026. Advertising accounts for roughly 73% of Alphabet’s total revenue.
The government had pushed for Google to sell AdX, its ad exchange where publishers pay a 20% fee to place ads. Brinkema rejected that, saying improved access to real-time bids would restore competition without a forced sale.
What the Ruling Requires
Under the new order, Google cannot require websites using its ad server to also use AdX. It must also share more data with publishers and allow access to AdX without locking them into other Google tools.
The judge ordered an antitrust compliance monitor, though with less oversight authority than the government had sought. Brinkema cited the “gravity” of Google’s violations as justification for the monitor.
Both sides have 30 days to file a proposed final judgment reflecting the remedies.
Google’s Response and Next Steps
Google said it disagreed with the liability ruling on its Google Ad Manager tool and will appeal that portion of the decision. The company had argued that breaking up its ad tech business would have hurt small businesses trying to reach customers online.
Associate Attorney General Stanley Woodward Jr. called the outcome a “significant victory” for the DOJ and said the department is reviewing legal options going forward.
This is the second time a federal judge has declined to break up part of Google’s business. Last September, a separate judge ordered Google to open up competition in online search but stopped short of requiring a sale of Chrome.
Alphabet’s market value currently exceeds $4.1 trillion. Global digital ad spending is projected to reach $605 billion next year, up from $424 billion in 2023.
Wall Street remains bullish, with a Strong Buy consensus rating and an average price target of $427.08, according to TipRanks.
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