The Department of Justice (DOJ) is taking a firm stance on restoring competition in the ad tech sector by instructing Google to make significant changes. According to recent filings, the DOJ is requesting that Google divest its ad exchange product, AdX, along with a phased sale of DoubleClick for Publishers (DFP), an ad server used by website publishers.
This move follows Google’s defeat in a recent trial against the DOJ, where the court ruled against the company and set a remedies trial for this fall. The DOJ’s actions are grounded in concerns that Google has created an anti-competitive environment by tying AdX and DFP together, allegedly forcing publishers to utilize Google’s suite of products or face significant revenue losses.
In its filings, the DOJ contends that opening up Google’s ad buying tools, like AdWords, to work alongside third-party ad tech products is crucial for a fair market. They argue that such access should occur without restrictions, unless directed explicitly by advertisers.
The DOJ believes that dismantling Google’s monopolistic practices is essential to restore a competitive landscape in ad exchanges and publisher ad servers. In response, Google has pushed back against the DOJ’s proposals.
Lee-Anne Mulholland, the company’s VP of regulatory affairs, argued that these actions would only harm publishers and advertisers. Google claims that its proposed remedies adequately address the court’s ruling without necessitating drastic divestitures.
Additionally, Google has suggested allowing real-time bids from AdX to be accessible to all third-party ad servers and recommended oversight from an independent observer for compliance over the next three years. As the remedies case approaches this fall, it is expected that Google will file a complaint following the outcome, which could have significant implications for its business model.