DOJ pushes Google to sell key ad-tech units over illegal monopoly
The U.S. Department of Justice (DOJ) has called for Google to divest key components of its advertising technology business after a federal judge ruled that the company illegally monopolised two online ad-tech markets.
The ruling, issued last month by U.S. District Judge Leonie Brinkema in Alexandria, Virginia, found Google guilty of “wilfully acquiring and maintaining monopoly power” in these markets. This marks another significant antitrust setback for the Alphabet-owned company, following a separate ruling last year that found Google maintained an illegal monopoly in online search.
Judge Brinkema has scheduled a trial for September to determine the remedies for Google’s dominance in ad tools used by online publishers.
Google has opposed the DOJ’s proposal, arguing that structural remedies such as forced divestitures exceed the scope of the court’s ruling. Instead, the company has suggested behavioural changes, including making real-time bidding data available to competitors.
Lee-Anne Mulholland, Google’s vice president of Regulatory Affairs, said the DOJ’s push for divestiture exceeds the court’s ruling, lacks legal foundation, and could negatively impact both publishers and advertisers.
Google’s AdX platform facilitates real-time bidding for digital ad space, while its publisher ad server technology helps websites manage their advertising inventory. The tools are widely used by news publishers and other online content providers to generate revenue.
Shares of Alphabet fell nearly 1.1% in premarket trading on Tuesday following the DOJ’s announcement.
Google has faced similar scrutiny in Europe, where it previously offered to sell AdX to resolve an EU antitrust investigation. However, the proposal was rejected by European publishers as insufficient.
The upcoming trial will determine the extent of any potential restructuring, with both sides expected to present arguments on how to address Google’s dominance in the online advertising market.
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