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US DOJ Proposes Google Divest AdX and DoubleClick to Restore Ad Tech Competition

The U.S. Department of Justice has proposed that Google divest its ad exchange product AdX and phase out DoubleClick for Publishers to restore competition in digital advertising. The DOJ alleges Google unlawfully maintained monopoly power by integrating these products and restricting publisher revenue. Google disputes the claims, warning the remedies could harm publishers and advertisers. This move is part of broader antitrust scrutiny targeting Google's dominance in digital ad tech and search markets.

Published May 6, 2025 at 06:05 AM EDT in Cybersecurity

The U.S. Department of Justice (DOJ) has taken a decisive step to restore competition in the digital advertising technology space by proposing that Google divest two of its major advertising products: the ad exchange AdX and the ad server DoubleClick for Publishers (DFP). This proposal follows a recent judicial finding that Google willfully acquired and maintained monopoly power in the digital ad market.

The DOJ's filing outlines a phased sale of DoubleClick for Publishers and an immediate divestiture of AdX. Additionally, Google would be barred from operating an ad exchange for ten years following the sale of AdX. These measures aim to dismantle Google's integrated ad tech ecosystem, which the DOJ claims unfairly pressured publishers to use Google's products under threat of significant revenue loss.

Central to the DOJ's allegations is Google's strategy of combining AdX and DFP to create a monopoly that forced publishers into exclusive use of Google's ad server. The DOJ also demands that Google open its ad buying tools, including AdWords, to work on non-discriminatory terms with all third-party ad tech products, ensuring fair competition in bidding, ad placement, and data sharing.

Google has pushed back against the DOJ's proposals. Lee-Anne Mulholland, Google's VP of regulatory affairs, stated that the DOJ's additional demands go beyond the court's findings and could harm both publishers and advertisers by disrupting established ad tech workflows.

In response, Google has proposed its own remedies, including making AdX real-time bids available to all third-party ad servers and subjecting its actions to oversight by an independent compliance observer for three years. Despite these efforts, the DOJ remains firm on divestiture as essential to ending Google's monopolistic practices.

This antitrust action against Google is part of a broader regulatory crackdown on Big Tech's dominance, including separate cases targeting Google's search engine and Chrome browser monopolies. The DOJ's comprehensive remedy package aims to reintroduce competition, protect publisher revenues, and prevent future anti-competitive behavior in the ad tech ecosystem.

Implications for the Digital Advertising Industry

If implemented, the DOJ's proposed divestitures could reshape the digital advertising landscape by breaking Google's vertical integration and enabling more competition among ad exchanges and publisher ad servers. This could lead to increased transparency, better revenue opportunities for publishers, and more diverse choices for advertisers.

However, the transition may also bring challenges, including technical integration complexities and potential disruptions to existing ad delivery systems. Stakeholders across the ad tech ecosystem will need to adapt to new competitive dynamics and compliance requirements.

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