The news: The DOJ requested a federal judge mandate Google divest key components of its ad tech business and sell two of its advertising products, AdX and DoubleClick for Publishers, advancing its strategy to dismantle Google’s advertising dominance. The request comes after a second federal judge declared that Google operates an illegal ad tech monopoly.

• The DOJ pushed for a gradual, multi-stage implementation plan for DoubleClick, while requesting Google opens ad buying tools like AdWords to create a level playing field with Google for third-party vendors “on non-discriminatory terms.”
• Julia Tarver Wood, the DOJ’s lead lawyer in the case, stated that leaving Google with “90% of publishers beholden to them is, frankly, too dangerous.” Google’s legal team asserted that a mandated breakup is inconsistent with prior legal rulings and could jeopardize critical privacy and security measures.
• District Judge Leonie Brinkema, who ruled last month that Google “[deprived] rivals of the ability to compete,” stated that she would set a September 22 hearing to determine remedies for the case.
• Lee-Anne Mulholland, Google’s VP of regulatory affairs, stated the move would harm advertisers and publishers, claiming the request “[has] no basis in law.”

Zooming out: Google has been under legal fire for months over alleged illegal monopolies.

• Judge Amit Mehta ruled in August 2024 that Google maintains illegal monopolies in search services and search text ads that has stifled competition and led to higher ad prices and lower quality search services.
• Last month’s ruling determined that Google has monopolies in two out of three markets: the publisher ad server market and the ad exchange market. However, Judge Brinkema did not agree with the DOJ that Google maintains a monopoly in “advertiser ad networks.”

The implications for Google: The ongoing claims will require Google to battle regulators on multiple fronts to defend its search and ad tech businesses. Proposed remedies could include financial, structural, and behavioral changes, which would require Google to divest its sell-side ad tech—majorly disrupting the ad ecosystem and rerouting supply and demand.

However, despite challenges, Google is expected to remain a powerful force in digital advertising. Google’s resources and AI developments could help it maintain its market position.

Our take: Advertiser spending on Google platforms will likely persist through any eventual corporate restructuring—but ongoing legal battles could still trigger significant ad industry shifts, creating competitive openings and leading to a more fragmented marketplace.

To navigate current uncertainty, advertisers should remain informed about emerging ad technologies and platforms that stand to benefit most from market fragmentation. Considering how data strategies may need to evolve in a more decentralized ad ecosystem is vital.