GOOG: U.S Government escalate action against Google’s Alphabet
Google was asked to sell off its advertising exchange AdX immediately.
Quick overview
- The US DOJ has intensified its antitrust case against Alphabet, seeking a court-ordered breakup of its online advertising business.
- Google is required to sell its advertising exchange AdX immediately, followed by a phased sale of DoubleClick for Publishers.
- The DOJ's actions stem from findings that Google has harmed competition and innovation in the ad tech market.
- Despite ongoing legal challenges, Alphabet has shown strong financial performance and plans to invest $75 billion in capital projects.
The US Department of Justice (DOJ) escalated its antitrust action against Google parent Alphabet, calling for a court-ordered dissolution of the online advertising conglomerate. Google was asked to sell off its advertising exchange AdX immediately.
This should be followed by a “phased” sale of DoubleClick for Publishers, its publisher ad server, and a key component of its digital advertising stack.
The action was prompted by US District Judge Leonie Brinkema’s conclusion that Google harmed competition and innovation by monopolizing the ad tech market. The DOJ claims that Google inflated costs for advertisers and decreased revenue for publishers due to its dominance in tools for buying and selling online display ads.
Google has previously denied any wrongdoing, the company is expected to contest any divestiture order. Alphabet had a strong start to 2025, as evidenced by increased sales and operating margins of 12 percent and 230 basis points year over year. Google Cloud has grown by 28% annually, remains the company’s main growth driver.
Markets have been impressed by Alphabet’s strong execution, made significant progress in monetizing generative AI despite a turbulent macro environment, ongoing antitrust cases, and fierce competition in the field. In 2025, Alphabet reiterated its plan to invest $75 billion in capital projects.
Markets view these investments as sound and believe the company has a significant, long-term opportunity in generative AI.
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