US government wants Google to sell its ad tech products
What's the story
The US Department of Justice (DOJ) has proposed that Google should divest its AdX advertising marketplace and DFP ad server. This comes after a federal judge found that the tech giant illegally dominated two online advertising technology markets. The judge has set a trial date for September to discuss possible remedies for Google's dominance in ad tools used by online publishers.
Legal stance
DOJ insists on divesting to restore competition
The DOJ has argued that the proposed remedies, including divesting, are necessary to finish Google's monopolies and restore competition in the ad-exchange and publisher ad-server markets. However, Google disagrees with this proposal. The company argues that it supports behavioral remedies like making real-time bids available to competitors but contends that prosecutors cannot legally force it to sell parts of its business.
Company rebuttal
Response to DOJ's proposal
Google's Vice President of Regulatory Affairs, Lee-Anne Mulholland, said that the DOJ's proposals to compel a divestiture of their ad tech tools go far beyond the court's findings. She contended that these proposals have no basis in law and would hurt publishers and advertisers. AdX or Ad Exchange is an online marketplace where publishers can offer their unsold ad space for purchase by advertisers in real-time.
Previous attempt
Google's offer to sell AdX in EU
Notably, this proposal by the DOJ comes after a similar case last year when Google had offered to sell AdX to end an EU antitrust investigation. However, European publishers had rejected this proposal as insufficient.