Alphabet Shares Rise After Judge Spares Google AdX Sale

Google faced allegations of running an unlawful advertising monopoly. Yet on Wednesday, it emerged from court with its business largely unscathed.

The US Justice Department's bid to compel Google to divest AdX — the core exchange of its ad tech system — was turned down by Judge Leonie Brinkema. Following the removal of the breakup risk, Alphabet's stock edged higher.

Rather than a sale, Brinkema mandated modifications to Google's ad tool operations, such as opening bidding data more extensively to competitors.

A Close Call for the Tech Giant?

The lawsuit was filed in 2023, with the Justice Department and a group of states alleging that Google had monopolized the technology platforms publishers rely on for selling digital advertisements.

Brinkema sided with the plaintiffs in April 2025, ruling that Google unlawfully locked publishers into AdX, from which it takes a 20% commission.

“substantially harmed Google’s publisher customers, the competitive process, and, ultimately, consumers of information on the open web,” Reuters reported, citing Brinkema.

Google contended that forcing a sale of AdX would present technical challenges and disrupt its customers. The court declined to mandate the divestiture.

This verdict continues a notable trend. A year prior, a different judge permitted Google to retain Chrome. In November, Meta was allowed to hold onto Instagram and WhatsApp. US authorities have now failed in three consecutive efforts to dismantle major tech companies.

Within Alphabet's $4.08 trillion market cap, Ad Manager is a minor component. In 2020, it accounted for 4.1% of Google's revenue and 1.5% of its operating profit.

Yet the regulatory heat is not letting up. Google continues to contend with European regulatory challenges, its standing in AI is still uncertain, and Alphabet's substantial AI investments are raising growing concerns among shareholders.