In a landmark move to restore competition in the digital advertising industry, the U.S. Department of Justice (DOJ) has proposed that Google divest two of its most significant ad tech products—AdX and DoubleClick for Publishers (DFP). This follows a federal court ruling that found Google guilty of “willfully acquiring and maintaining monopoly power” in two key segments of the ad tech market.
U.S. District Judge Leonie Brinkema determined last month that Google had unlawfully dominated the ad exchange and publisher ad server markets. In court filings reviewed by Reuters and TechCrunch, the DOJ asserted that structural changes, such as divestitures, are essential to dismantle Google’s monopolies and prevent further anticompetitive practices.
The DOJ is specifically calling for a complete divestiture of AdX, Google’s digital ad exchange platform, and a phased sale of DFP, which helps publishers manage and deliver ads. Additionally, the department is seeking a 10-year ban on Google operating any ad exchange post-AdX divestiture. The DOJ also accused Google of tightly integrating AdX with DFP, creating a system where publishers would lose substantial revenue if they didn’t use both services—effectively blocking competition.
Further, the DOJ has directed Google to open up its ad-buying tools, including AdWords, to allow full interoperability with third-party ad tech platforms on fair and equal terms. This mandate includes bidding, placement, and data access, unless an advertiser specifies otherwise.
In response, Google strongly opposed the DOJ’s proposals. Lee-Anne Mulholland, Google’s Vice President of Regulatory Affairs, criticized the recommendations as overreaching and legally unfounded. She argued that these structural remedies would hurt publishers and advertisers. Mulholland maintained that Google’s own proposed solutions—such as opening AdX to third-party ad servers and appointing an independent compliance monitor—are adequate and already meet legal standards based on the court’s ruling.
However, the DOJ dismissed these behavioral remedies as insufficient to curb Google’s monopolistic influence. Notably, in Europe, Google had previously attempted to resolve an antitrust case by offering to sell AdX, but the proposal was rejected by publishers who deemed it inadequate.
A trial to decide the final set of remedies in the DOJ’s case against Google is scheduled for September, following recent hearings where both sides presented their arguments.
