Google Just Won the Right to Keep Its Ad Tech Tools. They Live in the One Business It Has That Is Shrinking.
Key PointsA federal judge declined to break up Google's ad tech business on Wednesday, accepting most of the parties' proposed behavioral remedies instead.
Alphabet's (NASDAQ:GOOG) (NASDAQ:GOOGL) ad technology tools have been granted a reprieve in the latest legal battle. U.S. District Judge Leonie Brinkema denied the government's request to force the sale of the company's ad exchange and publisher ad server. Instead, she accepted most of the proposed behavioral remedies, with some modifications of her own.
This decision follows the judge's previous ruling that Google had illegally monopolized key advertising technology markets, marking a significant legal victory for the company. However, the ad tech tools that Google just won the right to keep are found in the one business area of Alphabet that is already experiencing a decline. Revenue in Alphabet's Google Network business, where these products are located, has been falling for three consecutive years, slipping further in the second quarter despite every other revenue line at the company growing.
This context suggests that while the legal win is a positive outcome, it may not significantly impact shareholders given that this business segment is already shrinking.
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