The U.S. government’s years-long effort to curb Google’s power in the online advertising market officially entered the courtroom this week as a landmark antitrust trial began in Alexandria, Virginia. At stake is whether Google must divest key parts of its advertising technology business—a move that could significantly reshape the digital advertising ecosystem.
A High-Stakes Battle Over Ad Tech
The case, brought by the U.S. Department of Justice (DOJ) and supported by several states, argues that Google’s ownership of multiple layers of the ad tech stack gives it an unfair competitive advantage. Google operates the ad exchange (AdX) where ad space is auctioned in real time, as well as the publisher ad server that websites use to manage and sell that space. Regulators contend that this vertical integration allows Google to preference its own systems, harming publishers, advertisers, and rival ad tech firms.
In April, U.S. District Judge Leonie Brinkema ruled that Google holds unlawful monopolies in certain web advertising markets. The current trial will determine the remedies—what Google must do to address that monopoly power.
What the DOJ Is Seeking
The Justice Department wants Google to sell off AdX, its ad exchange platform, and to open-source the auction mechanism that determines which ad wins placement when users load websites. Regulators argue that only a structural remedy—such as breaking off parts of the ad tech business—can restore a truly competitive marketplace.
In addition, the DOJ has proposed that if competition does not significantly improve within four years, Google could be forced to divest its publisher ad server, one of its most critical tools for managing ad inventory.
Google’s Counterargument
Google maintains that the government’s proposed remedies are too extreme and could cause significant disruption to the advertising ecosystem. In court filings and public statements, Google has warned that divesting AdX or open-sourcing the auction mechanism could lead to market confusion, slower innovation, and higher costs for both publishers and advertisers.
Instead, Google has floated alternative, less drastic solutions, including policy changes to ensure publishers can more easily use competing ad tools alongside Google’s services. The company has also acknowledged that it once explored selling AdX as part of discussions with European regulators but insists that such a move is unnecessary now.
Why This Trial Matters
The outcome of this case could reshape the multibillion-dollar online advertising industry. Google’s ad tech business is one of the most important pillars of its parent company Alphabet’s revenue, generating tens of billions annually. Any forced divestiture could fundamentally change how digital ads are bought, sold, and measured.
For publishers and advertisers, a government win could create a more open and competitive marketplace, potentially reducing costs and giving them more control over their data and pricing. For smaller ad tech competitors, the ruling could open doors to compete more effectively.
If Google prevails, however, it would keep its powerful, vertically integrated ad tech stack largely intact—likely reinforcing its dominance but also maintaining the current efficiencies that advertisers and publishers rely on.
Broader Regulatory Context
This trial is part of a wave of antitrust actions against Big Tech. Google is simultaneously fighting a separate DOJ case alleging monopolistic practices in its search business. Meta, Amazon, and Apple are facing similar legal challenges from regulators in the U.S. and Europe. Together, these cases signal an aggressive regulatory era aimed at reining in the market power of the largest technology companies.
Legal experts say Judge Brinkema’s decision could set a precedent for how courts approach complex digital markets where a single company controls multiple layers of the value chain.
What Legal Professionals Should Watch
- Judge Brinkema’s Approach: Her ruling on remedies will likely clarify how courts weigh structural versus behavioral remedies in digital market antitrust cases.
- Market Impact: How publishers, advertisers, and rival ad tech companies respond if Google is forced to divest a major part of its ad business.
- Future Regulatory Action: Whether the trial triggers similar actions against other tech giants controlling critical market infrastructure.
Conclusion
The trial in Virginia represents a turning point for Google, for the online advertising industry, and for antitrust enforcement in the digital era. Whether the court orders Google to break up its ad tech business or accepts its softer compliance proposals, the decision will likely shape the balance of power in online advertising for years to come.
⚖️ Call to Action for Legal Professionals
This case underscores the rising importance of antitrust and competition law in the technology sector. Attorneys with expertise in regulatory compliance, digital markets, and litigation will play a critical role in shaping the future of Big Tech oversight.
Visit LawCrossing to explore legal job opportunities in antitrust law, technology regulation, and competition litigation—and position yourself at the forefront of one of the most consequential legal battles of the decade.
