US Department of Justice Pressures Google to Divest Two Key Advertising Products
The U.S. Department of Justice (DOJ) has taken significant steps to enhance competition in the advertising technology sector by proposing that Google divest two of its major advertising products. This move comes in the wake of a recent court ruling that declared Google guilty of “willfully acquiring and maintaining monopoly power” within the digital advertising landscape.
DOJ’s Proposal for Google’s Advertising Products
According to the latest filing, the DOJ is recommending that Google sell its Ad Exchange product (AdX) and implement a phased sale of DoubleClick for Publishers (DFP), an ad server designed for website publishers. Additionally, the DOJ wants Google to refrain from operating an ad exchange for a period of 10 years following the divestment of AdX.
Allegations Against Google
- The DOJ alleges that Google has “ensured that publishers would lose significant revenue if they did not use AdX.”
- It accuses Google of creating a monopoly by integrating AdX with DFP, effectively coercing websites to adopt Google’s publisher solutions.
The proposal also calls for Google to make its ad buying tools, such as AdWords, compatible with all third-party ad tech products. These tools should operate on non-discriminatory terms regarding bidding, matching, and ad placement, unless directed otherwise by an advertiser.
Implications of the DOJ’s Filing
The DOJ’s filing states:
“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.”
Google’s Response to the Proposal
In response, Google’s VP of regulatory affairs, Lee-Anne Mulholland, expressed concerns that the proposed measures would negatively impact both publishers and advertisers. She stated:
“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.”
Google’s Counter-Proposals
In a separate filing, Google has suggested its own remedies, which include:
- Making AdX real-time bids accessible to all third-party ad servers.
- Implementing an independent compliance observer to oversee Google’s actions for three years.
Ongoing Antitrust Challenges for Google
Google is currently facing antitrust scrutiny from multiple fronts. In addition to the advertising technology case, there are ongoing discussions regarding the potential sale of its Chrome browser, following a judge’s determination that Google holds a monopoly in the online search market.
These developments highlight the increasing regulatory pressures on major tech companies and the ongoing efforts to foster competition in the digital marketplace.
