In a major escalation of the federal government’s antitrust campaign, the U.S. Department of Justice (DOJ) is asking a court to order the company divest key parts of its digital Google ad business.

The demand comes after Judge Leonie Brinkema ruled on April 16 that Google violated the Sherman Antitrust Act by abusing its dominance in ad tech to manipulate prices and suppress competition in the online advertising market.

DOJ Demands Google Ad Business Divestiture

“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,” said Lee-Anne Mulholland, Google’s Vice President of Regulatory Affairs.

The Department of Justice’s request, as reported by Reuters and AppleInsider, targets two crucial Google advertising products:

• AdX: The exchange where digital ad inventory is bought and sold.
• DFP (DoubleClick for Publishers): A management platform that publishers use to run and serve ads.

The DOJ argues that Google should sell both platforms, with a court-appointed trustee overseeing the divestitures and ensuring compliance.

The judge is considering a forced breakup of Google’s advertising empire. She cited illegal monopolistic behavior in the digital ad market.

Google Pushes Back Against Divestiture

Google responded sharply to the DOJ’s filing, saying such a breakup is “not technically feasible” due to how tightly AdX and DFP are integrated into its infrastructure. Instead, Google proposed a series of behavioral remedies aimed at improving market fairness without breaking up the company.

These include:

• Allowing rival ad servers access to real-time bidding data from AdX.
• Dropping Unified Pricing Rules, giving publishers more control over their ad pricing.
• Avoiding “first look” and “last look” auction tactics that gave Google competitive advantages.
  Google claims these steps sufficiently address the court’s liability findings. The company also emphasized that Google Ad Manager, though a small piece of its overall business, is vital for small publishers and businesses. Forcing a sale, Google warns, could raise costs and reduce access to key digital tools.

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What Happens Next?

As the case moves forward, both the DOJ and Google will continue to negotiate potential remedies. The court could ultimately approve either the forced divestiture plan or Google’s proposed conduct-based solutions. An appeal is also expected.

The outcome could reshape the digital advertising landscape, affecting how ads are bought, sold, and optimized across the internet.