Google Fights to Keep Ad Tech Business Intact as Antitrust Trial Begins
Alphabet’s Google is fighting to avoid the forced sale of its advertising platform, AdX, as it heads to trial against US antitrust authorities in Alexandria, Virginia. The trial, which began on Monday, marks another significant chapter in the US government’s effort to challenge the dominance of major tech firms.
The Department of Justice (DOJ), along with a coalition of states, is demanding that Google sell AdX. This platform allows publishers to sell digital ads through real-time auctions, where Google takes a 20% fee. The government also wants Google to make the software that selects auction winners available as open-source technology.
Google Offers Policy Changes Instead of a Sale
In response, Google has proposed changes to its advertising policies. These updates are intended to allow publishers more flexibility to use and support competing ad platforms. However, the DOJ argues that these changes are not enough to restore fair competition in the digital advertising market.
The trial follows a key ruling in April by US District Judge Leonie Brinkema, who found that Google holds unlawful monopolies in online advertising technology. Brinkema will now decide whether the company’s proposed remedies are sufficient or if stricter action is necessary.
Google has urged the court to adopt a cautious approach. It points to a recent decision in Washington, D.C., where a judge rejected most of the DOJ’s claims in a different antitrust case involving Google’s search engine.
Wider Scrutiny of Big Tech Continues
This case is part of a broader crackdown on major tech companies, a push that began during Donald Trump’s presidency and continues under bipartisan support. Alongside Google, the US government is also pursuing antitrust cases against Meta, Amazon, and Apple.
Google argues that forcing a sale of AdX would create long-term uncertainty for both advertisers and publishers. Interestingly, the company had previously offered to sell AdX during private discussions with EU regulators, as reported by Reuters last year. Internal studies linked to that potential sale could be introduced as evidence in the current trial.
The trial will also feature testimony from key industry figures, including former executives from News Corp, DailyMail.com, and Advance Local. These witnesses are expected to highlight how Google allegedly restricted competition by tying its ad server with AdX. Judge Brinkema’s earlier ruling stated that this practice gave Google an unfair advantage by allowing its advertisers to bid first and last in ad auctions.
The DOJ has proposed that if competition does not improve within four years, Google should also be required to sell its publisher ad server. Whether this will be necessary remains to be seen, as the court weighs the evidence and Google’s defence.
with inputs from Reuters
