A significant antitrust trial looms for Alphabet's Google, scheduled to begin in September, as the U.S. Department of Justice (DOJ) pushes for a major restructuring of the tech giant's advertising technology division. The trial, presided over by U.S. District Judge Leonie Brinkema in Alexandria, Virginia, will examine allegations that Google has illegally monopolized the market for tools used by online publishers to sell digital advertising space.
The DOJ intends to pursue a remedy that would force Google to divest its ad exchange and publisher ad server businesses. This process, if successful, is expected to take several years to implement. The government argues that Google's dominance in these areas stifles competition and harms both publishers and consumers.
Google, while acknowledging some areas for improvement, opposes a forced sale. The company proposes alternative "behavioral" remedies, such as making real-time bidding data more accessible to competitors. Google contends that a forced breakup is legally unsound, would negatively impact internet users, and may not even attract willing buyers for the divested assets.
Publisher ad servers are crucial platforms that websites utilize to manage and sell their digital ad inventory. Combined with ad exchanges, these technologies enable online content creators, including news organizations, to generate revenue through advertising.
Judge Brinkema previously ruled in April that Google unlawfully linked the use of its ad exchange to the use of its ad server. She also found that Google implemented anticompetitive policies that were detrimental to its publisher clients. These actions, according to the court, undermined competition, harmed publishers, and ultimately disadvantaged internet users.
Notably, Google has previously considered selling its ad exchange in an attempt to satisfy European antitrust authorities, according to reports from last year. The upcoming trial promises to be a landmark case in the ongoing debate over the power and influence of big tech companies in the digital advertising market.