A US judge has ruled that Google has illegal control over ad technology, which could lead to US officials trying to break up parts of the company. Here’s what the case is about and what it could mean for Google’s parent company, Alphabet.
The most important thing to know is what this case is not about. It’s not about Google’s main business—search—which makes most of its money. That’s part of a separate legal case. This case is about Google’s ad tech business, called Google Network.
How Google network works
This part of the company runs a system where advertisers bid to show ads online. It helps decide which ads show up, where they go and how much they cost.
Government lawyers say Google uses its strong control over this system to block out other companies, which harms websites like news outlets. The judge agreed with them. Google says it just built better tech than its competitors.
How big is the ad tech business for Google?
Advertising made up about 75% of Alphabet’s total $350 billion revenue in 2024. But Google Network made up only 8.7% of that. Now that the judge has decided Google has illegal control, the court will next look at what to do about it. The government wants at least to break off Google Ad Manager, which is part of the Network group. Ad Manager made up 4.1% of Google’s revenue and only 1.5% of its profit in 2020. Newer numbers were hidden in court papers.
What might happen next
Erik Hovenkamp, a professor at Cornell Law School, said earlier that if Google lost the case, it would likely have to give up some, but not all, of its display ad business. That would reduce its total income by less than 10%.
Google has already said it’s open to giving up part of its ad tech business. Back in September, Reuters reported that Google offered to sell its ad exchange, which is a part of Google Ad Manager, to make European regulators happy. But many publishers said no to that plan.
The most important impact of this case might be how Google handles any changes the court forces it to make in its ad tech business, says Nikolas Guggenberger, a law professor at the University of Houston. If the government wins, it could make it easier for advertisers and publishers to switch to other companies.
The case also shows something rare in US politics—both the Biden and Trump governments have supported this lawsuit. That’s unusual, since they often disagree. It shows both sides want to hold Big Tech companies like Google more responsible.
Another, even bigger case is still ahead
There’s another, even bigger case still going on about Google’s search business. Experts say that one is more serious. If Google loses that one, the effects could be much worse. A trial for the search case will be held soon in Washington.
No. Google has already said it will fight the ruling. The judge now has to decide what actions Google must take because of its illegal monopoly. Unless Google and the government settle, this case could go on for years.
