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US Prosecutors Seek to Split Google’s Ad Business in Antitrust Trial

By  |  September 22, 2025

The US Department of Justice escalated its battle with Google on Monday, calling for the breakup of the company’s digital advertising operations. According to the Financial Times, federal prosecutors urged a judge in Virginia to force Google’s parent company, Alphabet, to divest its largest ad exchange and gradually unwind the technology that online publishers use to sell advertising space.

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    The request marks the remedies phase of a closely watched antitrust trial. Judge Leonie Brinkema had earlier ruled that Google had “wilfully” monopolized parts of the digital ad market, noting in April that the company’s practice of tying together its ad server and ad exchange helped entrench its dominance. Per the Financial Times, Brinkema’s ruling found that Google had used contractual rules and technological integration to secure its monopoly position for more than a decade.

    Government lawyers argued that structural changes are essential to restore competition. Julia Tarver Wood, one of the department’s attorneys, told the court that the ad exchange market was “broken,” pointing to high prices and limited choices for customers who were “locked in.” Prosecutors also presented testimony from Grant Whitmore, an executive at Advance Local, who described Google’s system as opaque and resistant to change, calling it a “black box.” He added that so-called behavioral remedies would not be enough to counteract Google’s market power.

    The stakes are significant for the tech giant. Google earns more than $50 billion each quarter from search-related advertising, revenue that finances projects ranging from artificial intelligence to autonomous vehicles. According to the Financial Times, the Justice Department wants Alphabet to separate parts of its business to ensure competitors can thrive in digital advertising.

    Read more: Google to Submit EU Ad Tech Proposal Without Full Breakup

    Google has pushed back strongly. Karen Dunn, a lawyer for the company, characterized the government’s proposed solution as an “over-reach” that would harm consumers and destabilize the market. The company has instead suggested voluntary measures, including sharing bidding data from its exchange with rivals. Dunn also raised the possibility that rapid advances in artificial intelligence could outpace any decade-long remedy plan.

    The advertising trial runs alongside a separate antitrust case targeting Google’s search business. In that case, Judge Amit Mehta ruled the company had engaged in monopolistic practices by paying Apple and other partners to make Google the default search engine. However, he declined to order a breakup, choosing instead to ban exclusive distribution contracts and require Google to share data with competitors. That decision was viewed as a victory for Google and sparked a rally in its share price.

    Source: The Financial Times