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DOJ turns up the heat on Google, seeks divestiture of ad tech assets
In a recent court filing, the DOJ argued that forcing these sales is necessary to break down Google's alleged monopolies and encourage more competition in the ad exchange and publisher ad server markets.
Google has suggested alternative solutions to foster competition, such as behavioral changes to improve competitors' access to real-time bidding. However, the company insists that the court cannot legally compel it to sell its businesses.
The US Department of Justice (DOJ) is increasing the pressure on Google in its legal fight, now demanding the tech giant sell off its AdX digital ad marketplace and DFP ad management platform. This move comes amid accusations of Google illegally monopolizing the ad-tech sector, as per reports.
In a recent court filing, the DOJ argued that forcing these sales is necessary to break down Google's alleged monopolies and encourage more competition in the ad exchange and publisher ad server markets.
A US district judge, Leonie Brinkema, previously agreed that Google holds a monopoly over the essential tools used by online publishers to host ad space and the software that enables transactions between publishers and advertisers. Judge Brinkema stated that Google had "wilfully engaged in a series of anticompetitive acts," ultimately granting it "monopoly power in the open-web display publisher ad server market."
In a separate legal challenge, the DOJ contends that Google used exclusionary agreements, such as its multi-billion dollar annual payments to Apple to be the default search engine on iPhones, to block competitors. Furthermore, in August 2024, a federal judge ruled that Google had acted illegally to maintain its search monopoly.
Google has suggested alternative solutions to foster competition, such as behavioral changes to improve competitors' access to real-time bidding. However, the company insists that the court cannot legally compel it to sell its businesses.
Lee-Anne Mulholland, Google's Vice President of Regulatory Affairs, told Reuters that the DOJ's additional divestiture proposals "go well beyond the Court's findings, have no basis in law, and would harm publishers and advertisers."
Google's Ad Exchange (AdX) is a real-time marketplace where publishers and advertisers can automatically buy and sell digital advertising space, often through real-time bidding (RTB). The DFP platform allows publishers to manage and deliver advertisements on their websites.
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