The U.S. Department of Justice is looking for Google to break up its digital promoting empire after a federal judge ruled the tech giant illegally maintained monopoly power within the ad exchange market.
Driving the news. In a court filing on Sunday, the DOJ said Google should divest its AdX exchange, where ad inventory is bought and sold. It also needs to sell its DFP platform, which publishers use to manage and serve ads. The sales could be overseen by a court-appointed trustee, who would find buyers and monitor compliance.
Why we care. The DOJ’s proposal to force Google to dump AdX and DFP strikes the core of Google’s multibillion-dollar ad tech stack. A sale of AdX and DFP could disrupt how digital ads are bought and sold, potentially impacting the prices and efficiency of ad campaigns.
A forced divestiture might fragment the ecosystem, making it harder to goal audiences and measure performance across platforms. It could also force advertisers to adapt to latest systems or lose access to integrated capabilities they depend on today.
Catch up quick. Judge Leonie Brinkema ruled on April 16 that Google violated the Sherman Antitrust Act through the use of its dominance in ad tech to harm competition and control pricing within the open web ad market.
Google’s response. Google pushed back hard, arguing that:
- Divestiture is “not technically feasible” because AdX and DFP are deeply integrated into Google’s infrastructure.
- Instead, it offered conduct remedies to increase transparency and interoperability: Letting rival ad servers access real-time bids from AdX.
- Dropping Unified Pricing Rules to give publishers more control.
- Continuing to avoid “first look” and “last look” auction tactics.
- Google says these remedies fully address the court’s liability findings — some extent it claims the DOJ conceded in court.
“The DOJ’s additional proposals to force a divestiture of our ad tech tools go well beyond the Court’s findings, haven’t any basis in law, and would harm publishers and advertisers,” said Lee-Anne Mulholland, Google’s VP of Regulatory Affairs.
Between the lines. The case centers on Google Ad Manager, a product Google argues is a small piece of its business but critical for publishers. Google says forcing a sale could raise costs and disrupt tools that small businesses and independent publishers depend on.
What’s next. Both sides will proceed to negotiate remedies because the case heads toward appeal. The court could approve a divestiture plan or Google’s proposed behavioral fixes.
Dig deeper:
- What the Google antitrust ruling could mean for advertisers
- Google adtech antitrust trial: Everything you wish to know
- 7 weak spots in Google’s defense against adtech antitrust claims
- Adtech antitrust verdict is a turning point in marketers’ fight for transparency
Zoom out. The case is considered one of several antitrust battles Google faces within the U.S. and globally. A win for the DOJ here could set a precedent for structural remedies in Big Tech regulation.
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