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Google fights DOJ push to break up ad tech business as antitrust trial opens

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Alphabet’s Google is back in court, facing a U.S. Department of Justice (DOJ) bid to force it to divest parts of its online advertising empire. The antitrust trial, which opened Monday in Alexandria, Virginia, could reshape the digital ad market if the government succeeds.

The DOJ and a coalition of states want Google to sell its ad exchange AdX, which charges publishers a 20% fee to auction ads in real time, and to make the auction’s decision-making mechanism open source. Prosecutors argue that only structural remedies like divestiture can address Google’s illegal monopolization, after U.S. District Judge Leonie Brinkema ruled earlier this year that Google unlawfully tied AdX to its publisher ad server.

“Leaving Google with the motive and the means to recreate that tie is simply too great a risk,” DOJ attorney Julia Tarver Wood said in opening statements.

Google’s lawyer Karen Dunn pushed back, calling the proposals “radical and reckless,” claiming they would harm competition by giving regulators “broad and unparalleled power” over a major tech platform. Instead, Google has offered policy changes that would make it easier for publishers to work with rivals — but the DOJ insists such tweaks are insufficient.

The trial follows a recent DOJ loss in a separate search monopoly case, where a Washington, D.C. judge refused to impose most of the government’s remedies. But prosecutors argue this case is different, since ad tech is the monopoly itself rather than just a distribution method.

Industry stakeholders are closely watching the outcome. Grant Whitmore of Advance Local, which runs local news outlets in eight states, testified that Google’s control of advertiser tools, publisher tools, and the AdX exchange “offers a lot of opportunities for Google to continue to put their thumb on the scale.” He said Google should also be forced to sell its publisher ad server.

Google has previously floated selling AdX to settle an EU investigation, according to Reuters, and internal documents from those talks may surface during this trial.

The case is part of a broader bipartisan effort to curb Big Tech power, with ongoing actions against Meta, Amazon, and Apple. The stakes are high: a forced breakup of Google’s ad tech stack would mark one of the most significant antitrust interventions in the digital economy’s history.

Mark Zuckerberg Defends Meta Against US Antitrust Allegations During Trial Testimony

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Meta CEO Mark Zuckerberg testified on Monday in a closely watched antitrust trial in Washington, defending the company against claims that it acquired Instagram and WhatsApp to stifle competition. US regulators argue that Meta’s multibillion-dollar deals were strategically aimed at neutralizing emerging threats to Facebook’s dominance in the social media landscape.

The Federal Trade Commission (FTC) is seeking a major structural remedy that could force Meta to divest Instagram and WhatsApp. This case, viewed as a major test of the US government’s willingness to challenge Big Tech, comes at a critical time when Meta’s revenue heavily depends on platforms like Instagram, which reportedly contributes to nearly half of the company’s US advertising income.

During his testimony, Zuckerberg, dressed in a dark suit and light blue tie, maintained a calm demeanor as he refuted claims that the acquisitions were motivated solely by a desire to crush competition. He insisted that connecting friends and family was only one part of Meta’s broader vision for its apps. Zuckerberg highlighted that Facebook’s strategy also emphasized helping users discover public content, beyond just personal sharing.

Zuckerberg also addressed a pivotal 2018 decision when Facebook shifted its focus back to content shared by friends, a move that failed to keep pace with how users were increasingly sharing through private messages rather than public posts. Meanwhile, the FTC presented internal communications suggesting Zuckerberg had viewed acquiring Instagram and WhatsApp as strategic moves to preempt future rivals, particularly with the rising competition from newer platforms like TikTok.