According to a recent report by wall street journalGoogle is currently in the process of “redistribute” its advertising activities for avoid U.S. Justice Department antitrust lawsuits.
Google’s advertising business soon outside of Alphabet?
The American giant has offered to separate its advertising business from the rest. For several years, Google has allowed companies to buy advertising space on the web and in search results. The company is ready to create a new company to separate this activity, if it avoids antitrust actions. This solution would be part of the multiple possibilities that Google has put on the table with the US Department of Justice, in order to avoid new lawsuits for anticompetitive practices.
According to the report of wall street newspaper, this operation would lead to a real reorganization of the company. This would mean that ads and auctions would no longer be managed by Google, even if the management of this activity would ultimately be entrusted to the same people… Google’s dominance and scale in app and web advertising has captured the attention of regulators for several years. In 2020, the US government filed antitrust charges against the company.
The American giant is looking for compromises
Regulators believe that Google “illegally maintained a monopoly in the online search and advertising market”. Today, Google wants to avoid any new legal action and the possible penalties that could result from it. The American giant also wants avoid having to make much bigger changes than those currently offered. According to wall street journalthe Ministry of Justice could nevertheless bring a new lawsuit in the coming months if it does not reach an agreement with the company.
Google spokesperson Peter Schottenfels explains that “We have engaged constructively with regulators to address their concerns. As we have said before, we have no intention of selling or discontinuing this business, and we are deeply committed to delivering value to a wide range of publisher and advertiser partners in an industry. highly competitive”. Google is not ready to give up this activitybut seems willing to find compromises.