The U.S. Justice Department is intensifying its efforts to break up Google by requesting a federal judge to compel the tech giant to divest some of the technology fueling its digital advertising network. This move aligns with an existing federal initiative to separate Google’s Chrome browser from its dominant search engine. The latest proposal, submitted to a Virginia federal court, comes following a ruling by a federal judge that Google’s lucrative digital advertising network has been leveraging its market dominance unfairly to suppress competition, particularly harming online publishers.
In a 17-page filing, lawyers from the Justice Department argued that Google should be directed to sell off its AdX business and DFP ad platform, which facilitate connections between advertisers and publishers to generate revenue. Additionally, the government is pushing for other restrictions, including a 10-year ban on Google’s operation of a digital ad exchange, to weaken the influence of what they call a “repeat offender monopolist.”
Google vehemently opposes this proposal and plans to challenge it during the penalty phase of the antitrust case, set to begin in late September. While Google intends to appeal the ruling that found its ad network technology in violation of the law, any appeals are pending the judge’s decision on the proposed sanctions, anticipated either late this year or early next year.
Google argues that the Justice Department’s plan would create economic turmoil and technological disruption, ultimately harming advertisers, publishers, and internet users. In response, Google has presented its own counterproposal, which includes increased transparency within its ad network and the appointment of a trustee to oversee its practices for three years.
The potential dismantling of Google’s ad network adds to the Justice Department’s broader campaign to compel the company to divest its Chrome browser and impose other limitations to reduce the power of its dominant search engine. These efforts coincide with an evolving landscape driven by artificial intelligence, which is reshaping consumer technology usage and online information seeking behavior.
If the Justice Department succeeds in convincing two separate judges to implement the proposed breakup of Google, it would mark the most significant corporate breakup in the U.S. since AT&T’s forced restructuring over four decades ago. While Google has faced legal challenges regarding its Play Store and commission system, the impact of dismantling its search engine and ad network would be far more profound due to their central roles in a business that generated $265 billion in revenue last year.
Google originated in a Silicon Valley garage in 1998 and has evolved into a powerhouse. Despite facing challenges, Google continues to deliver strong financial performance to its parent company, Alphabet Inc., now valued at $2 trillion. Alphabet’s stock experienced a slight drop during Tuesday’s late morning trading session.
