Federal regulators are pushing for a major shake-up in Google’s advertising operations, calling for the tech giant to spin off key parts of its ad tech empire under court supervision.
The Department of Justice wants Google to divest its AdX exchange, a central marketplace connecting advertisers with digital publishers, as part of a broader antitrust enforcement effort targeting what the government describes as monopolistic control in online advertising.
The proposal, submitted in a legal filing, also urges the separation of Google’s DoubleClick for Publishers (DFP), a platform used by websites to manage and sell their ad space. The DOJ contends that both AdX and DFP are core to Google’s allegedly unlawful dominance, facilitating behavior that undermines fair competition.
Google pushed back strongly in its response, filed May 5, rejecting the notion that breaking up its ad tech stack is necessary or even workable. The company argued that its systems are so deeply embedded in its own infrastructure that transferring the technology would require rebuilding it from scratch for external use.
“Divestiture is not as simple as selling either the AdX or DFP source code to a willing buyer,” the filing stated, explaining that the code depends heavily on Google’s proprietary environment and cannot function independently.
Rather than selling off parts of its ad business, Google proposed a series of behavioral changes it says would resolve the court’s concerns and restore competition. Among the suggested measures: allowing equal access to AdX’s real-time bidding system for competitors managing open web display ads.
“The DOJ conceded Google’s proposed ad tech remedy fully addresses the court’s decision on liability,” said Lee-Anne Mulholland, Google’s vice president of regulatory affairs, in a statement on Tuesday. She added, “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.”
The company also expressed openness to oversight, agreeing to the court’s idea of appointing an external trustee to monitor the implementation of its proposed remedies for up to three years.
This legal standoff follows a decision last month by US District Judge Leonie Brinkema, who concluded that Google’s practices in the ad exchange and server markets violated the Sherman Antitrust Act, ultimately to the detriment of advertisers and consumers alike.
More: Google’s Monopoly Exposed: How the Sherman Act Took Down a Giant
