To Avoid an Antitrust Suit, Google Proposes Splitting its Ad-tech Business

Google is suggesting that the advertising divisions be divided off into a different corporate unit to prevent an antitrust lawsuit.
SIA Team
July 17, 2022

Google reportedly considered dissolving a portion of its ad-tech division, according to The Wall Street Journal, in order to prevent the US Justice Department from bringing an antitrust lawsuit.

Google suggests breaking away from its parent firm, Alphabet, Inc., the segment that manages and sells web advertising. The assets listed might make this worth billions of dollars.

Investigations into claims that Google abused its authority as a broker and auctioneer of digital advertising have been ongoing by the Justice Department for some time. As recently as October 2020, it filed a lawsuit against the business, claiming that it was illegally impeding competition by abusing its influence.

This recent accusation comes after three antitrust cases brought by the European Union, where Google was fined $1.6 billion for abusing its dominating position in the search engine market between 2006 and 2016.

A number of states have also filed lawsuits against the search engine, accusing it of having a monopoly. Google, on the other side, is attempting to have the case dismissed on the grounds that it is untrue and without merit.

Additionally, a bipartisan bill to separate the company’s digital advertising division was submitted in Congress in May. If a company processes more than $20 billion in digital ad transactions annually, the Competition and Transparency in Digital Advertising Act would forbid them from taking part in more than one aspect of the digital advertising process.

As of now, the department is currently preparing a lawsuit alleging anti-competitive practices, which could be filed this summer.