The U.S. Department of Justice (DOJ) has taken a bold step to rein in Google’s dominance in digital advertising. In a court filing made public on Monday, the DOJ proposed that Google, a subsidiary of Alphabet Inc., be required to sell off two of its core advertising technology platforms—AdX and DoubleClick for Publishers (DFP). This aggressive proposal follows a federal judge’s recent ruling that found Google had illegally monopolized two major sectors of the online advertising market.
According to the DOJ, dismantling Google’s hold on these tools is the only way to restore healthy competition in the digital ad industry. The government made it clear that structural changes, rather than surface-level reforms, are needed to fix the imbalance that has allowed Google to dominate for years.
Trial Set for September as DOJ Targets Structural Reform
On Friday, the judge overseeing the case scheduled a trial for September, following discussions with both Google and the DOJ regarding potential remedies. During these discussions, the DOJ argued that forcing Google to divest key parts of its ad business is not only necessary but also legally justified.
Without such a move, the DOJ contends, the company would continue to wield disproportionate influence over how digital ads are bought and sold. The DOJ explained that behavioral changes—such as increased transparency or limited data-sharing—would fall short of correcting the core problem.
“These divestitures are essential to eliminate Google’s illegal monopolies and bring real competition back to the ad tech space,” the DOJ stated in its filing.
Google Strongly Opposes Forced Divestitures
Google has fiercely opposed the DOJ’s proposal, claiming that the suggested remedies go far beyond what the court found in its decision. The company has argued that while it remains open to behavioral solutions, such as offering competitors real-time access to bidding data, forcing it to sell off parts of its business is both excessive and unlawful.
Lee-Anne Mulholland, Google’s Vice President of Regulatory Affairs, issued a sharp response. “The DOJ’s proposals to force a divestiture of our ad tech tools exceed the court’s findings, have no legal foundation, and would ultimately hurt publishers and advertisers,” she said in a statement to Reuters.
Google insists that its integrated platform benefits the entire advertising ecosystem by providing efficiency, reliability, and better returns for clients.
What Are AdX and DFP, and Why Are They So Important?
AdX, short for Ad Exchange, acts as a digital marketplace where publishers offer their unsold ad space to advertisers in real time. This system enables advertisers to compete for ad placements through automated auctions, maximizing revenue for publishers.
DFP, or DoubleClick for Publishers, serves as an ad server that allows websites to store, organize, and display digital advertisements across their pages. Together, AdX and DFP form the backbone of Google’s control over the digital advertising supply chain.
Because Google controls both the buying and selling sides of ad transactions, it gains access to unique data insights and positions itself at nearly every point of the advertising process. This end-to-end control has raised concerns among regulators and industry players, who argue that it stifles innovation and squeezes out competitors.
Previous EU Antitrust Efforts Failed to Bring Change
This is not the first time Google has faced pressure to divest parts of its ad business. Last year, Google offered to sell AdX in an effort to settle a European Union antitrust investigation. However, that offer was swiftly rejected by European publishers who said the proposal was inadequate and would not bring meaningful change to the industry.
Now, with the DOJ taking a more aggressive stance, Google finds itself under intensified scrutiny on both sides of the Atlantic. The DOJ’s case marks one of the most serious antitrust challenges ever mounted against a major tech company in the United States.
What Lies Ahead for Google and the Digital Ad Industry?
As the September trial approaches, the battle between Google and the DOJ is set to escalate. The outcome will likely have far-reaching consequences for the online advertising industry and could establish a powerful precedent for future actions against dominant tech firms.
If the court sides with the DOJ and mandates divestitures, it could dismantle Google’s integrated ad tech ecosystem and open the door for smaller players to re-enter the market. Advertisers and publishers may benefit from greater choice, better pricing, and a more level playing field.
In the meantime, Google must prepare to defend its business model against the government’s growing legal pressure. For now, the company remains committed to fighting any forced breakup while continuing to emphasize the advantages of its current system.
