Court Decision on Google's Advertising Business Expected in 2026

The ongoing legal proceedings in the United States regarding Google's dominance in the online advertising sector have reached a pivotal phase. After months of hearings, a federal judge is now set to determine whether Google must divest portions of its advertising operations.

The case centers on allegations that Google, which controls approximately 90 percent of the online advertising market according to the U.S. Department of Justice, may have used its market position to stifle competition. The core focus is on the integration between Google's ad-serving platform and its advertising exchange, which are used to place and sell ads across the internet in real time.

While holding a monopoly is not inherently illegal under U.S. law, the methods employed to maintain such dominance can be subject to legal scrutiny. The U.S. Department of Justice and a coalition of state governments argue that Google's practices have limited fair competition and are seeking to compel the company's parent, Alphabet, to offer competitors greater access to its advertising technology or potentially sell off parts of its business.

During the proceedings, the judge concluded that Google's integration of ad-serving and ad-selling platforms constitutes a monopoly in this sector. The trial, which began in 2024 and continued under the current administration, has involved testimony from publishers, advertisers, and industry experts, all examining the potential impact of Google's market conduct.

Legal experts have indicated that even if a decision is reached in 2026, the path to a final outcome may be prolonged. Google is expected to appeal any ruling requiring divestment, which could delay the process for several years. In addition, implementing a sale or structural change within Google's complex advertising operations could extend the timeline by up to two more years, according to expert testimony.

In response to the scrutiny, Google has proposed measures designed to increase transparency for publishers and allow them greater control over their own advertising sales. The company has also suggested providing competitors with enhanced access to its advertising systems. These steps are reminiscent of previous commitments Google made in separate legal cases to avoid forced divestitures of its browser and mobile operating system businesses.

The advertising segment is vital to Alphabet's overall business model, accounting for roughly three-quarters of its total revenue. In its most recent financial quarter, Google reported advertising revenues exceeding $56 billion, reflecting continued year-over-year growth. This includes earnings from its own platforms such as YouTube.

The outcome of the court's decision is expected to have significant implications for the online advertising industry, potentially affecting publishers, advertisers, and the broader digital economy. Depending on the final ruling and any subsequent appeals, changes to market practices and access to technology could reshape competition in the sector.