The U.S. Government Says Google Has a Monopoly on the 'Lifeblood of the Internet,' and Wants It to Divest The Department of Justice is proposing that Google sell two of its products in the digital ad tech space, but Google has its own ideas.
By Erin Davis Edited by Sherin Shibu
Last month, a U.S. District Judge in Alexandria, Virginia, wrote that Google had harmed advertisers and consumers by violating the Sherman Antitrust Act in two markets. It was the second time in less than a year that a federal judge had ruled that the tech giant was a monopoly.
Now, in a new filing, the U.S. Department of Justice (DOJ) is proposing that Google divest two of its products in the digital ad tech space to remedy to situation: AdX, its ad exchange; and its ad server, DoubleClick for Publishers (in a "phased" sale, per TechCrunch).
The DOJ also wants to bar Google from running any ad exchange product for 10 years.
In the filing, the Court writes that digital advertising is "the lifeblood of the Internet" and "Google has engaged in a decade-long campaign to acquire, protect, and entrench monopoly power" in two markets "critical to digital advertising." It notes that "divestiture is the most important and most effective of antitrust remedies, in large part because [i]t is simple, relatively easy to administer, and sure."
Google, however, has its own ideas.
On Monday, Google filed its response in court, and then, on Tuesday, the tech giant posted a condensed version in a public blog post online.
"We disagree with the Court's ruling on our publisher tool, Google Ad Manager (a small part of our business), and will appeal," writes Lee-Anne Mulholland, Google's vice president of regulatory affairs. "DOJ is seeking remedies that go significantly beyond the Court's narrow ruling by forcing a divestiture of Google Ad Manager."
Related: Here's Why Google Losing the Antitrust Case Matters, According to a Market Insights Expert
Google outlined some of its suggestions, which include making it easier for publishers to use Google Ad Manager with other ad tech providers and "giving publishers the option to set different price floors."
"Ad Manager helps publishers easily fund their content and grow their businesses, and most of the money we make from the tool is reinvested back into it," Mulholland writes. "Breaking it would raise costs and disproportionately impact small businesses who rely on Google's affordable, easy-to-use tools to grow."
Meanwhile, in the other monopoly case, the DOJ also wants Google to sell its Chrome browser. A judge will decide by August what Alphabet, Google's parent company, must do.
Google is also appealing that case.
If the company is forced to sell, there is no shortage of interested buyers, including OpenAI.
Related: Firefox Would Like to Remind Everyone It Exists and 'Isn't Backed By a Billionaire'
