The U.S. Justice Department escalates its antitrust war against Google, seeking a historic breakup of its digital advertising empire in a move that could reshape the global tech landscape.
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| As AI reshapes digital trends, the U.S. demands Google divest key ad platforms in what could be the biggest tech breakup since AT&T, citing monopolistic practices in global online advertising. Image: CH |
Washington, USA – May 7, 2025:
The U.S. government is advancing one of the most consequential antitrust battles in modern tech history by demanding the forced breakup of Google’s digital advertising network, signaling a new era of regulatory scrutiny for Big Tech.
In a sweeping proposal filed late Monday, the Department of Justice (DOJ) urged U.S. District Judge Leonie Brinkema to order Google to divest two cornerstones of its ad business — AdX, its ad exchange platform, and DoubleClick for Publishers (DFP). These tools underpin a system that connects advertisers with online publishers, generating a significant portion of Google's $265 billion in annual revenue.
The DOJ accused Google of illegally abusing its market dominance to suppress competition, calling the company a “recidivist monopolist” in its 17-page filing. The government also proposed a 10-year ban on Google from operating any digital ad exchange to prevent future market manipulation.
Google immediately pushed back, calling the proposed remedy “economically chaotic and technologically destructive.” In its counterproposal, the tech firm offered to enhance transparency and oversight through a three-year monitoring plan led by an independent trustee.
The case is part of a broader offensive by U.S. regulators, who are simultaneously pursuing efforts to weaken Google’s hold over the search engine market. A separate federal judge, Amit Mehta, is expected to rule by Labor Day 2025 on whether Google’s Chrome browser should be separated from its search engine — another alleged monopoly.
Together, these actions represent the most ambitious federal efforts to restructure a U.S. tech company since AT&T’s forced breakup in 1984, which created seven regional telephone companies.
The DOJ’s campaign against Google comes amid rising global concerns over digital market concentration, especially as the emergence of artificial intelligence (AI) reshapes how users access information, shop, and interact online — potentially shifting revenue away from entrenched ad ecosystems like Google's.
Meanwhile, Google is still grappling with the fallout from a 2023 federal jury ruling that found its Play Store to be an illegal monopoly, ordering reforms to its app commission system — another multibillion-dollar revenue stream now under threat.
Despite legal and regulatory headwinds, Alphabet Inc., Google's parent company, remains financially resilient. As of Tuesday, its stock dipped just 0.9%, closing at $163.20, with the firm still holding a $2 trillion market valuation.
If both antitrust cases result in mandated breakups, the legal actions could redefine the structure of digital markets globally, potentially leveling the playing field for smaller ad tech firms and online publishers.