Google has entered a legal dispute in Virginia, where US antitrust regulators are seeking the separation of its core advertising technology business. The case focuses on AdX, Google’s ad exchange platform, which handles billions of ad auctions and is alleged to maintain the company’s control over the digital advertising sector.
The US Department of Justice (DOJ), supported by several states, argues that Google’s position across the ad buying process – including publisher tools and the exchange where ads are sold – limits competition. Publishers currently pay AdX approximately 20% to run auctions shortly after a page loads. Regulators claim that divesting AdX is necessary to increase transparency and restore market competition.
Judge Leonie Brinkema, who is overseeing the case, has ruled that Google unlawfully linked AdX to its publisher ad server. DOJ attorney Julia Tarver Wood said that allowing Google to retain both businesses ‘would risk a repeat of past monopolistic practices.’
Google is opposing the call for divestiture. Its lawyer, Karen Dunn, said the DOJ’s proposal was ‘reckless’ and warned that a forced sale could 'disrupt the advertising ecosystem and reduce market stability.' Google has instead proposed changes to its policies to make it easier for publishers to connect with rival platforms, although regulators argue these steps are not sufficient.
Publishers, news organisations, and competing ad tech firms are closely watching the trial. Some have launched separate legal actions seeking compensation. Executives from companies such as Advance Local have stated that 'levelling the playing field requires structural adjustments rather than changes to the law.'
This case is part of a broader US initiative targeting major technology firms, including Meta, Amazon, and Apple. The outcome may influence the future structure of digital advertising and determine the extent of Google’s influence in the sector.
