(Vmeetsolutions News) – The U.S. Department of Justice has suggested that Alphabet’s Google should sell off its AdX advertising exchange as well as the ad serving platform DFP, according to a court document released on Monday. This move comes following a federal judge’s conclusion that the corporation had engaged in unlawful monopolistic practices within two sectors of the online ad-tech industry.
On Friday, the judge established a trial date for September following arguments from both Google and the Department of Justice regarding possible solutions to address the company’s substantial control over advertising tools utilized by web publishers.
The Justice Department stated that the suggested solutions, which include asset sales, are essential to dismantle Google’s dominant positions and reinstate competitive conditions within the ad-exchange and publisher ad-server sectors.
Google stated that the company backed behavioral remedies like providing real-time bidding access to rivals. However, they also noted that prosecutors do not have the legal authority to seek an order compelling Google to divest portions of its business.
“The Department of Justice’s extra suggestions to compel us to sell off our advertising technology tools extend further than what the court determined, lack legal foundation, and could damage both publishers and advertisers,” stated Lee-Anne Mulholland, Google’s vice president for Regulatory Affairs, in an official statement to Vmeetsolutions News.
AdX, also known as an Ad Exchange, serves as a platform where publishers can offer their unused advertising spaces to marketers for immediate acquisition. These transactions occur in real time. Meanwhile, publisher ad servers refer to systems utilized by webpages to keep and oversee their online advertisement stock.
In addition to ad exchanges, this technology enables news publishers and various online content providers to generate revenue through advertising sales.
A year ago, Google made significant progress toward resolving a European Union antitrust inquiry by proposing to divest AdX. However, this suggestion was turned down by European publishers who felt it did not go far enough.
(Reported by Abinaya Vijayaraghavan; additional reporting by Chandni Shah in Bangalore; Edited by Nivedita Bhattacharjee, Mrigank Dhaniwala, Miyoung Kim)