U.S. Pushes to Break Up Google’s Ad-Tech Monopoly Following Judge’s Ruling

0 70

The U.S. Department of Justice has taken a bold step by seeking a breakup of Google’s ad-tech business after a federal judge found the tech giant to have unlawfully monopolized two key digital advertising markets. In a recent court filing, the DOJ proposed that Google be required to divest AdX, its ad exchange, and DFP, its publisher ad server platform. These tools are crucial in the online advertising ecosystem, especially for websites that rely on digital ad revenue.

The trial, now officially scheduled for September, marks one of the most significant antitrust confrontations in the tech sector in years. The judge’s findings gave the DOJ the green light to recommend structural changes aimed at restoring competition. According to the DOJ, anything short of divestiture would not effectively curb Google’s dominance or provide long-term relief to the digital ad industry.

Google, however, is pushing back hard. The company argues that the DOJ’s proposed remedies go beyond the court’s findings and lack legal grounding. Instead of selling off parts of its business, Google supports more limited, behavioral changes, like offering competitors access to real-time bidding data. Their concern is that forced divestitures would actually hurt both publishers and advertisers by disrupting a system that many rely on for revenue.

AdX acts as a digital marketplace where publishers can auction off unsold ad space, while DFP manages the ad inventory that appears on websites. Together, these tools have helped Google solidify its grip on the $600 billion global digital ad market. Critics argue that by owning both the buying and selling platforms, Google gives itself an unfair advantage that squeezes out competitors and reduces transparency.

This case comes on the heels of similar scrutiny from the European Union, where Google recently offered to sell AdX in an attempt to settle a separate antitrust probe. That offer was ultimately rejected by EU publishers as inadequate. With growing global momentum behind regulatory action, the U.S. lawsuit could mark a turning point in how governments deal with dominant tech platforms. The upcoming trial will be one to watch.

Source: Reuters

Leave A Reply

Your email address will not be published.