Alphabet, Google’s parent, faces new antitrust setback, but investors need not worry.

A federal judge in Eastern Virginia ruled Thursday that Alphabet Inc., Google’s parent, engaged in monopolistic practices within the ad-server and ad-exchange markets, though not in ad networks. However, this is another antitrust defeat, but analysts say investors should not worry, as the ruling is not as bad as it could have been, and it targets a smaller part of Google’s empire than its search business.

The decision was not as harsh as the previous antitrust case against Google’s search operations, so the response was rather restrained. Google’s vice president of regulatory affairs, Lee-Anne Mulholland, described it as a partial victory, pointing out that publishers choose Google’s ad-tech tools because they are simple and effective. The company will file an appeal of the ruling. Alphabet’s stock fell only 1.4% as investors believe that the case is far from being resolved.

According to Edward Jones analyst David Heger, the Google ad-tech sector, unlike its search or YouTube divisions, has not been the main driver of recent growth, so the ruling is not as big of a deal. BMO Capital Markets’ Brian Pitz pointed out that the Google Network, a lower-margin business, distributes most of the ad revenue to partners as traffic-acquisition costs, which further reduces the financial impact.

However, Heger also noted that the ruling was important because it was Google’s second antitrust loss in the initial rounds. The Justice Department had sought damages and divestiture of Google’s ad-server and ad-exchange units in this case, and another case had sought divestiture of Chrome. The market views these as long-term challenges rather than immediate threats, as remedies and appeals are likely to stretch over years.

The new Trump-appointed Justice Department leadership has Wall Street waiting for potential shifts in proposed remedies. The courts will decide Google’s obligations in the end, but for now, investors seem calm, betting on Alphabet’s resilience in the face of prolonged legal battles.