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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.

EU Slaps Google With $3.45B Antitrust Fine Over Adtech Practices

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The European Commission has fined Google €2.95 billion ($3.45 billion) for abusing its dominance in the online advertising technology market, marking the fourth major penalty against the company in a decade-long battle with EU regulators.

The Commission found that since 2014, Google has favored its own ad exchange AdX within the adtech supply chain, charging high fees that disadvantaged rivals and online publishers. Google has been ordered to end self-preferencing and conflicts of interest, with 60 days to present a compliance plan.

EU antitrust chief Teresa Ribera warned that stronger remedies—including a potential breakup—remain on the table if Google fails to make credible changes. “Digital markets exist to serve people and must be grounded in trust and fairness,” Ribera said.

The case has stirred transatlantic tensions. U.S. President Donald Trump blasted the fine as “unfair” and threatened retaliation under Section 301 of the Trade Act of 1974, which allows tariffs on countries that impose “unjustifiable” burdens on U.S. commerce.

Google immediately vowed to appeal, calling the decision “wrong” and arguing it would harm European businesses. “There are more alternatives to our services than ever before,” said Lee-Anne Mulholland, the company’s VP of regulatory affairs.

Critics, including the European Publishers Council, said the fine alone is insufficient. “A fine will not fix Google’s abuse of its adtech,” said executive director Angela Mills Wade, urging a breakup to protect Europe’s struggling media sector.

The penalty follows Google’s previous EU fines: €4.3 billion in 2018, €2.42 billion in 2017, and €1.49 billion in 2019. Meanwhile, Google faces a separate U.S. trial in September after a judge found it holds illegal monopolies in online advertising.

Google’s ad business remains the world’s largest, generating $264.6 billion in 2024, or 76% of Alphabet’s total revenue.