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Google considered adtech divestiture amid antitrust pressure, says Alphabet lawyer
Google and the DOJ are set to face off in a two-week hearing beginning next week, following a judge’s ruling that the company had illegally monopolized two key adtech markets. The hearing will determine whether Google must divest parts of its business.
The judge has scheduled another trial this month to determine whether Google should be forced to divest parts of its advertising business due to antitrust violations.
American multinational tech giant Google had considered selling parts of its advertising technology (adtech) business to address antitrust concerns in the United States and Europe, according to Jeannie Rhee, a lawyer representing parent company Alphabet Inc. The statement was made on September 15, as reported by the media.
Rhee revealed that the U.S. Department of Justice (DOJ) is pushing for a full technical separation and divestiture of Google's advertising exchange platform, AdX.
Google and the DOJ are set to face off in a two-week hearing beginning next week, following a judge’s ruling that the company had illegally monopolized two key adtech markets. The hearing will determine whether Google must divest parts of its business.
Google currently operates across the digital advertising ecosystem—running an ad-buying platform for marketers, an ad-selling platform for publishers, and a trading exchange (AdX) where both sides transact through rapid-fire auctions.
According to reports, prior to the DOJ filing its antitrust case in 2023, Google had proposed a settlement involving a partial structural separation. The plan would have created a standalone entity responsible for ad auctions and placements, but one that would still operate under the Alphabet umbrella.
U.S. District Judge Leonie Brinkema, who is presiding over the case, has allowed the Justice Department to present limited evidence about Google's internal deliberations on whether such a technological separation is feasible.
Meanwhile, the DOJ is seeking an immediate court order requiring Google to divest AdX and ensure its technology can operate compatibly with competing platforms.
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