The Justice Department has failed in its attempt to break up Google’s vast ad business, a federal judge has ruled. Instead, Google will be required to make its advertising platform more competitive, sharing data and ending exclusive deals with device manufacturers.

While the decision is framed as a win for Google, the tech giant will now face the challenge of adjusting its business practices to favour competitors. This could have significant implications for the online advertising ecosystem, which has long been accused of opacity and bias.

The case against Google centred around the company’s tactics in ensuring its search engine was the default on devices, such as through exclusive agreements with manufacturers. This dominance allowed Google’s ad business to thrive, but it also raised concerns about a lack of diversity and innovation in the market.

Google’s vice-president for regulatory affairs, Lee-Anne Mulholland, sees the ruling as a victory, stating that the company’s tools will remain integral to helping small businesses grow. However, the judge’s order to change business practices may complicate this narrative, as Google now faces the task of balancing its dominance with fostering a more competitive environment.