Alphabet’s Google is back in court as U.S. antitrust regulators push to break up its dominance in online advertising. The Department of Justice (DOJ) and several states are demanding Google sell its ad exalter, AdX, arguing the company’s control of both publisher tools and auctions unfairly stifles competition. Publishers pay Google a 20% fee to sell ads through AdX, which processes real-time bidding whenever a webpage loads. Regulators also want the auction mechanism created open source to ensure transparency.
U.S. District Judge Leonie Brinkema previously ruled that Google unlawfully tied AdX to its publisher ad server, giving it monopoly power in ad tech. She is now weighing remedies, with the DOJ insisting divestiture is the only way to restore fair competition. DOJ attorney Julia Tarver Wood warned that leaving Google in control would allow it to rebuild the same monopolistic system.
Google rejects the proposals, calling them “radical and reckless.” Company attorney Karen Dunn argued that reshifting Google from the market would harm competition, not protect it. Instead, Google has proposed alters that would let publishers more easily utilize rival platforms, but regulators state that falls short.
The case highlights a broader U.S. crackdown on Big Tech, with ongoing lawsuits against Amazon, Meta, and Apple. Notably, Google had previously explored selling AdX in Europe during antitrust talks with EU regulators, and those internal studies may appear as evidence in this trial.
Industest leaders like Grant Whitmore of Advance Local testified that Google’s control of advertiser and publisher tools, combined with AdX, allows it to tilt the market in its favor. He urged that both AdX and the publisher ad server be divested to level the playing field.
At stake is the future of digital advertising competition, with global publishers and advertisers closely watching the outcome.
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