To Avoid Anti-trust Lawsuit Google offers to Split Ad-tech Business
The government of United States has been offered by Google to split its ad-tech business that permits companies to place ads on Internet and apps, into a separate entity under the Alphabet umbrella, in order to avoid an antitrust lawsuit. According to the Wall Street Journal, the deal offered by Google was a part of multiple concessions to the United States Department of Justice so that lawsuits alleging anti-competitive practices can be avoided.
HIGHLIGHTS
- Google offered US Government to split ad-tech business
- The US Department of Justice has conducted probe into allegations
- Lawsuit is the biggest move of US Government, after the case against Microsoft
The United States Department of Justice has been conducting a probe into allegations that states “Google has abused its role as both a broker as well as auctioneer of digital advertisements to steer its business at the expense of rivals', and later it is preparing a lawsuit which can be declared shortly.
Google has been sued in the October month 2020 for antitrust violations, as per a 64 pages complaint with around 194 numbered items, the US Justice Department and 11 states. It has been alleged that it has weaponised its dominance in online search and advertising in order to exterminate competition and which could harm consumers.
This lawsuit is marked as the biggest move of the US government since its case against Microsoft which was 20 years ago. This case has arrived after 15 months of investigation and it can be considered as the opening scene of a lot of antitrust actions against other different Big-Tech companies.
As a reaction to the WSJ report which was published on Friday, a Google spokesperson has mentioned that they have been participating constructively with regulators to deal with their concerns. One of the spokesperson of the company was quoted in the report as said that “As mentioned before by us that we have no certain plans to sell or exit this business. Rigorous competition in ad technology has created online ads quite relevant, reduced fees, and expanded its options for the publishers and advertisers.'
Google has been facing anti-trust probes not just in US but also in the UK and India too. Well, Google has been preparing its ways to settle such anti-trust allegations to both the countries.
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