Google Faces Antitrust Showdown: Battle Over Advertising Dominance

Google is contesting a forced sale of its online advertising segment in a U.S. antitrust trial. The DOJ and states aim to mandate Google to sell its AdX platform, deemed monopolistic. The case, watched closely by industry stakeholders, is part of a larger crackdown on big tech firms.

Alphabet's Google is resisting efforts to divest part of its online advertising business in an antitrust trial commencing Monday in Alexandria, Virginia. The trial represents a significant opportunity for U.S. authorities to address Google's monopoly, notably after the failure of a separate attempt to compel the sale of its Chrome browser.

The U.S. Department of Justice, along with several state governments, seeks to mandate the sale of Google's ad exchange, AdX. Publishers currently pay Google a 20% fee for ad sales, and the government additionally wants the auction process to become open source. The case follows concerns raised by a judge proclaiming Google's monopolistic control over web advertising technology.

Google contends the DOJ's approach is technically impractical and generates uncertainty for stakeholders. Although Google once considered selling AdX during an EU antitrust investigation, it now suggests easing publisher access to competing platforms. Nevertheless, the DOJ maintains these measures are insufficient for true competitive restoration, proposing additional divestiture if necessary within four years.

(With inputs from agencies.)