DOJ Sues Google: Demands Sale of Ad Products

DOJ Proposes Google Divestiture to Enhance Ad Tech Competition

The United States Department of Justice (DOJ) has put forth a proposal requiring Google to sell off two of its advertising technology products. This action is intended to revitalize competition within the digital advertising technology sector, as detailed in a recent court filing.

This proposal follows a judicial ruling last month that determined Google had engaged in practices to “willfully acquire and maintain monopoly power” in the digital advertising landscape.

Specific Divestiture Requirements

The DOJ’s filing specifies that Google should divest its AdX ad exchange product. Furthermore, a “phased” sale of DoubleClick for Publishers, a crucial ad server utilized by website publishers, is also mandated.

To further prevent future monopolistic behavior, the department is requesting that Google refrain from operating an ad exchange for a period of ten years following the sale of AdX.

Allegations Against Google

The DOJ contends that Google actively worked to disadvantage publishers who chose not to utilize AdX, effectively reducing their revenue streams.

The department also alleges that Google established a monopoly through the integration of AdX and DFP, compelling websites to adopt Google’s publisher product suite.

Opening Up Ad-Buying Tools

The proposed remedies also include a directive for Google to make its ad-buying tools, such as AdWords, accessible to all third-party ad tech products.

This access must be provided under “non-discriminatory terms” regarding bidding, ad placement, information provision, and matching, except when specifically requested by an advertiser.

DOJ Rationale for Remedies

“This comprehensive set of remedies — including divestiture of Google’s unlawfully obtained monopolies and the products that were the principal instruments of Google’s illegal scheme — is necessary to terminate Google’s monopolies, deny Google the fruits of its violations, reintroduce competition into the ad exchange and publisher ad server markets, and guard against reoccurrence in the future,” the filing stated.

Google's Response

Lee-Anne Mulholland, Google’s VP of regulatory affairs, responded to the proposals, asserting they would negatively impact both publishers and advertisers.

“The DOJ conceded Google’s proposed ad tech remedy fully addresses the Court’s decision on liability. The DOJ’s additional proposals to force a divestiture of our ad tech tools go well beyond the Court’s findings, have no basis in law, and would harm publishers and advertisers,” Mulholland explained in a public statement.

Google's Proposed Alternatives

Google has submitted its own set of proposed remedies in a separate filing.

These include making real-time bids available through AdX to all third-party ad servers and subjecting Google’s actions to oversight by an independent compliance observer for a three-year period.

Broader Antitrust Pressure

Google is currently facing antitrust scrutiny from multiple fronts.

In a separate case, the U.S. government is also seeking the sale of Google’s Chrome browser, following a ruling that found the company to hold a monopoly in the online search market.