synopsis

The DOJ contends that Google engaged in monopolistic practices by locking out competition through acquisitions, customer lock-ins, and controlling how transactions were made in the online advertising market.

The U.S. Department of Justice (DOJ), on Monday, sought to break up Google’s advertising technology business after a federal judge found that the search giant had illegal monopolies across two markets.

According to a report by Reuters, the DOJ filed with the federal court hearing the case, confirming that it wants the Alphabet Inc.-owned company to sell its AdX digital advertising marketplace and DFP (previously known as DoubleClick for Publishers).

Alphabet’s stock was down 0.70% in pre-market trading on Tuesday.

AdX is Google’s ad exchange platform, which allows publishers and developers to sell their inventory to advertisers. DFP is Google’s ad server and management platform, which helps publishers manage their inventory.

DOJ’s filing comes weeks after Federal Judge Leonie Brinkema found Google guilty of illegal monopolies in April.

Brinkema’s ruling observed that Google had broken the law to dominate the online advertising technology. Google’s advertising business was aided by its 2008 acquisition of DoubleClick for $3.1 billion.

The DOJ contends that Google engaged in monopolistic practices by locking out competition through acquisitions, customer lock-ins, and controlling how transactions were made in the online advertising market.

In a separate lawsuit, the department also sought the sale of Google’s Chrome browser.

Google, however, contends that the DOJ’s proposal goes beyond the federal court's findings.

"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," Lee-Anne Mulholland, Google's vice president of Regulatory Affairs, said in a statement to Reuters.

Google is also currently facing a £5 billion (approximately $6.6 billion) class-action lawsuit in the U.K. over “near-total dominance” in the online search market.

This comes after the U.K.’s Competition and Markets Authority (CMA) provisionally found in 2024 that Google used anti-competitive practices in open-display advertising technology.

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