DOJ seeks forced breakup of Google digital ad businesses to ‘terminate' monopolies

Core Viewpoint - The U.S. Justice Department (DOJ) is advocating for Google to divest two of its digital advertising businesses, Ad Exchange (AdX) and DFP publisher ad server, following a federal judge's ruling that Google holds an illegal monopoly in the ad tech sector [1][2][4]. Group 1: DOJ's Proposals - The DOJ argues that Google should be required to sell off AdX and conduct a "phased divestiture" of its DFP publisher ad server to restore competition in the digital advertising market [1][2]. - The DOJ's filing emphasizes that these remedies are essential to terminate Google's monopolies and prevent future violations [3]. - A court-appointed official would supervise the divestiture process, allowing the DOJ to approve or reject potential buyers [3]. Group 2: Legal Proceedings and Implications - U.S. District Judge Leonie Brinkema has scheduled a trial for September 22 to discuss the remedies for Google's monopolistic practices [4]. - The DOJ indicated that a forced sale could take several years to finalize, highlighting the complexity of the divestiture process [4]. - Google's parent company, Alphabet, generated approximately $350 billion in revenue in fiscal 2024, with a significant portion derived from digital advertising, making any breakup potentially disruptive to its business [6]. Group 3: Google's Response - Google has expressed intentions to appeal the case, arguing that the DOJ's proposed remedies are excessively severe and may not be legally permissible [7]. - The company contends that a forced sale could undermine the tools that advertisers use to connect with publishers and effectively reach their audiences [11]. - Google has shown openness to behavioral remedies, such as sharing relevant ad data with competitors, while facing a separate potential breakup of its search business [14].