**Google Faces Pressure to Divest Ad Tech Amid Antitrust Ruling**
The U.S. Justice Department has urged a federal judge to compel Google, a subsidiary of Alphabet Inc., to divest significant components of its advertising technology and to share real-time data with competitors. This request follows a ruling that found Google to be illegally monopolizing a substantial portion of the online advertising market. The government is specifically seeking the divestiture of the publisher ad server software, which websites use to sell ads, as well as the exchange that connects buyers and sellers of online display ads.
During a hearing in Virginia, the DOJ proposed a phased approach that would initially require Google to provide real-time bidding data from its ad exchange to rival publisher ad servers. This request comes as part of ongoing legal proceedings concerning Google’s advertising operations. Additionally, the government is engaged in a separate trial in Washington that focuses on Google’s dominance in search.
U.S. District Judge Leonie Brinkema, who is overseeing the case, has scheduled a hearing for September 22 to consider proposals aimed at addressing the competitive harm identified in Google’s advertising business. Both parties are expected to submit detailed proposals by May 5. However, Judge Brinkema expressed skepticism regarding the necessity of selling the ad server, which was developed following Google’s acquisition of DoubleClick in 2008. She questioned whether divesting the advertising exchange, along with sharing bid data, would sufficiently resolve her concerns about Google’s anticompetitive behavior.
While Google and the DOJ largely agree on the need for real-time data access, Google has resisted the idea of divestitures, arguing that such actions would be impractical and disruptive. Recent trends indicate a decline in revenue from Google’s network business, which serves ads across the internet, suggesting that this segment may be losing significance for the tech giant.
The Justice Department emphasized to Judge Brinkema that divestitures are crucial to prevent Google from reverting to illegal practices in the future. DOJ attorney Julia Tarver Wood highlighted the challenges in predicting how a “recidivist monopolist like Google” might attempt to dominate the market again.
In response, Google’s Vice President of Regulatory Affairs, Lee-Anne Mulholland, stated that the DOJ’s proposed remedies exceed the court’s findings and lack legal justification, asserting that they would negatively impact publishers and advertisers. Last month, Judge Brinkema ruled that Google had violated antitrust laws in the advertising exchange and ad server markets, although she did not classify the company as a monopoly in a third market related to tools for advertisers.
**FAQ**
**Q: What are the implications of the DOJ’s request for Google?**
A: The DOJ’s request for Google to divest parts of its advertising technology could significantly alter the competitive landscape of online advertising, potentially allowing for greater competition and innovation in the market.
