A man walks by Google's offices in the Kings Cross area of London on August 10, 2024. (AP Photo/Brian Melley, File)
The U.S. government is stepping up its fight against Google, aiming to break apart the company’s powerful digital advertising business. In a major move filed in a Virginia court, the Justice Department is asking a judge to force Google to separate from key parts of its ad tech system—AdX and DFP. These tools connect advertisers and website owners, helping them buy and sell ad space online.
This legal action came shortly after a judge ruled that Google had been unfairly using its advertising tools to dominate the market and hurt competition. Now, the Justice Department wants strong penalties, including a 10-year ban on Google from operating any digital ad exchange, labelling the tech giant as a “repeat monopolist.”
Google is firmly against the proposed break-up. The company argues that the Justice Department’s demands would disrupt the digital economy, harm both advertisers and publishers, and ruin the online experience for users. In a court filing, Google warned that dismantling its ad network could lead to chaos in the online advertising space.
Instead, Google has presented its own plan. It includes appointing an independent trustee to monitor its ad business for three years and promises more transparency and fairness. Google insists that this approach will encourage healthy competition without tearing apart its systems.
This isn’t the only legal battle Google is facing. The Justice Department is also trying to weaken Google’s control over internet search by pushing to separate the Chrome browser from the Google search engine. A judge previously ruled that Google’s search dominance is unlawful, and a decision on how to fix that could arrive by Labor Day.
If these efforts succeed, it would mark the biggest corporate breakup in the U.S. since AT&T was split into regional phone companies in the 1980s.
Google is also dealing with another setback from last year, when a federal jury found its Play Store, which runs on Android devices, to be an illegal monopoly. A judge has ordered changes to how Google takes a cut from app sales—a system that brings in billions.
Yet, of all these challenges, the push to break up Google’s ad network and search engine could hurt the most. Together, they brought in $265 billion in revenue last year, forming the backbone of Google’s business.
These legal threats arrive at a time when artificial intelligence is reshaping how people use the internet. As users turn to new ways of finding information, even a tech giant like Google may start to feel the shift. Still, Google’s parent company, Alphabet Inc., continues to thrive. Despite the pressure, Alphabet’s value remains around $2 trillion, showing that the company isn’t slowing down—at least not yet.
