The U.S. Department of Justice is pushing for major changes to Google’s advertising business after a federal judge ruled the tech giant illegally maintained monopoly power in digital advertising. In a bold move, regulators want Google to sell two of its core ad products – the AdX exchange platform and DoubleClick for Publishers (DFP) – as part of sweeping reforms to restore competition in the $300 billion digital ad market.
This dramatic proposal follows last month’s court decision that found Google abused its dominant position by forcing publishers to use its ad tools. The DOJ alleges Google’s tight integration between AdX and DFP created an unfair “walled garden” that squeezed out competitors. Under the government’s plan, Google would be barred from operating an ad exchange for a decade after divesting these assets.
The proposed remedies go beyond just breaking up Google’s ad empire. Regulators also want to force Google to open its ad-buying tools like AdWords to work seamlessly with competing products, ensuring fair access for all advertisers. “These measures are necessary to terminate Google’s monopolies and reintroduce real competition,” stated the DOJ filing.
Google has pushed back hard against these demands. The company’s regulatory affairs VP Lee-Anne Mulholland called the proposals excessive, arguing they “have no basis in law” and would ultimately hurt publishers and advertisers who rely on Google’s tools. Instead, Google offered its own compromise – making AdX bidding available to third parties while submitting to three years of independent oversight.
This ad tech case represents just one front in Google’s growing antitrust battles. The company also faces pressure to potentially divest its Chrome browser after another court found it maintained an illegal search monopoly. As regulators worldwide take aim at Big Tech’s power, Google’s advertising business – its biggest cash cow – now faces its most serious existential threat yet.
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