The U.S. Department of Justice is demanding that Google break up its advertising monopoly after a federal judge ruled that the company illegally maintained dominant power in the ad exchange market. The DOJ's proposal includes divesting Google's AdX exchange and DFP platform, overseen by a court-appointed trustee. This move could disrupt the digital ad landscape, challenging targeted advertising methods and possibly complicating the efficiency of ad campaigns. Google countered that such divestitures are impractical, offering alternative remedies instead, claiming these would sufficiently address the concerns raised by the court.
Driving the news. In a court filing on Sunday, the DOJ said Google should divest its AdX exchange, where ad inventory is bought and sold.
A forced divestiture might fragment the ecosystem, making it harder to target audiences and measure performance across platforms.
Google's response. Google pushed back hard, arguing that divestiture is 'not technically feasible' because AdX and DFP are deeply integrated into Google's infrastructure.
Instead, it offered conduct remedies to increase transparency and interoperability, letting rival ad servers access real-time bids from AdX.
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