U.S. Department of Justice Proposes Google Divest AdX and DFP to Address Monopoly Concerns
The U.S. Department of Justice has proposed that Alphabet Inc.’s Google divest its AdX advertising marketplace and its DFP (DoubleClick for Publishers) ad server, following a federal judge’s ruling that the company illegally dominated two key online ad-tech markets. The proposal was disclosed in a court filing on Monday. The judge has set a trial date for September after hearing arguments from both Google and the DOJ regarding potential solutions to address the company’s control over essential ad tools used by online publishers.
DOJ Calls for Divestitures to End Google’s Ad-Tech Market Control
The U.S. Justice Department argues that divesting these tools is critical to eliminating Google’s monopolistic hold and restoring healthy competition within the ad-exchange and publisher ad-server markets. According to the DOJ, the proposed remedies, including divestitures, are necessary to ensure a more level playing field in the digital advertising sector.
U.S. Google Rejects DOJ’s Proposal, Argues Behavioral Remedies are Sufficient
In response, Google has expressed its disagreement with the DOJ’s push for divestitures. The company supports behavioral remedies, such as making real-time bidding accessible to its competitors, but argues that forcing the sale of its ad-tech business would go beyond the court’s findings and lacks legal grounds. Lee-Anne Mulholland, Google’s Vice President of Regulatory Affairs, stated that such proposals would harm both publishers and advertisers, stressing that they have no legal basis and would have negative consequences for the industry.
What is AdX and DFP?
AdX (Ad Exchange) is an online marketplace where publishers can sell their unsold ad inventory in real-time to advertisers. The DFP ad server is a platform that helps websites manage and store their digital ad space. These tools are essential for online content providers, including news publishers, to generate revenue by selling ads.
U.S. Google’s Previous Efforts to Resolve Antitrust Concerns in the EU
Last year, Google made a significant move to address antitrust concerns in the European Union by offering to sell AdX. However, the proposal was rejected by European publishers, who deemed it insufficient to resolve the competition issues in the digital ad marketplace.
