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DOJ Pushes Broader Google Ad Exchange Sale Despite Earlier Settlement Talks

By  |  September 15, 2025

Google considered selling off parts of its ad tech business to resolve antitrust concerns in Europe and the United States, but the Justice Department is pushing for a broader breakup, a lawyer for the company said Monday.

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    According to a statement in federal court, Jeannie Rhee, outside counsel for Google’s parent company Alphabet Inc., said the Justice Department wants a “full technical separation and divestiture” of the company’s advertising exchange, known as AdX. The two sides are preparing for a two-week hearing set to begin next week in Virginia, where the government will argue Google should be forced to sell key parts of its advertising technology operations.

    Rhee told the court that Google had explored a potential divestiture before litigation began, noting, “Google considered a business divestiture.” She emphasized, however, that the company’s proposal “is not identical in any way shape or form” to the Justice Department’s current demand. Per a statement at the hearing, Google had previously suggested splitting its auction and placement services into a separate company under the Alphabet umbrella, though no details were given on whether that offer is still being considered.

    Related: Alphabet Faces Regulatory Uncertainty as DOJ Decision Nears

    Judge Leonie Brinkema, who is presiding over the case, allowed the government to present limited information on Google’s internal discussions about whether such a split was technologically feasible. “The technical feasibility is the issue here,” Brinkema said.

    Regulators in both the U.S. and the European Union have accused Google of unfairly leveraging its dominance in online advertising. Earlier this month, European authorities fined the company €3 billion ($3.5 billion) over its practices, marking the second-largest penalty ever imposed on Google by the EU. The Justice Department, meanwhile, is seeking an order that would not only force Google to divest AdX but also require its ad technology to work seamlessly with rival platforms.

    The developments come as Google faces multiple antitrust challenges. Earlier this month, the company avoided a breakup in a separate case concerning its search business, when U.S. District Judge Amit Mehta declined to force the sale of its Chrome browser.

    Source: Bloomberg