The US Department of Justice (DOJ) is taking major steps to break up part of Google‘s digital advertising empire after a judge ruled the tech giant held an illegal monopoly in two key ad-tech markets.
The DOJ is now urging a federal court to force Google to sell its AdX platform and DFP ad server tools—key technologies that connect advertisers with websites looking to sell ad space.
These proposed changes aim to restore fairness and competition in the online ad space.
According to the DOJ, Google used its power to control both sides of the digital advertising market—where ads are sold and how they are delivered—leaving publishers and advertisers with fewer choices and higher costs.
According to CNBC, US District Judge Leonie Brinkema recently found Google guilty of “willfully acquiring and maintaining monopoly power” in these markets.
The trial to decide Google’s punishment is set for September, with a final ruling expected by early next year.
Google Warns Ad-Tech Split Would Hurt Internet Users
Google strongly opposes the DOJ’s demands. The company said that forcing it to sell parts of its ad business would harm advertisers, publishers, and internet users alike.
“The DOJ’s proposals… have no basis in law and would harm publishers and advertisers,” said Lee-Anne Mulholland, Google’s Vice President of Regulatory Affairs.
Instead, Google has offered a different solution. It suggested a plan to increase transparency and allow a court-appointed trustee to monitor its behavior for three years. Google argues this would protect competition without needing to break up its business.
The DOJ disagrees, saying stronger action is needed, including a 10-year ban on Google from running a digital ad exchange, Inquirer said.
The agency wants to ensure the company cannot repeat its past behavior, calling Google a “recidivist monopolist.”
This isn’t the only legal battle Google is facing. In another ongoing case, the DOJ is also trying to separate the company’s Chrome browser from its search engine, which another judge ruled was also an illegal monopoly.
If the courts approve the DOJ’s proposals, it would be the largest US company breakup since AT&T was forced to divide into smaller companies over 40 years ago.
Originally published on vcpost.com
