July 18, 2024


Sapiens Digital

Google Reportedly Offers to Split Ad Tech Business to Fend Off US Antitrust Suit

2 min read


Google has reportedly offered to make concessions to thwart a possible antitrust lawsuit by the Department of Justice that takes aim at the search giant’s ad technology business. 

Google proposed splitting off the part of its business “that auctions and places ads on websites and apps into a separate company” under parent Alphabet, according to a report Friday from The Wall Street Journal. The proposed separate company could reportedly be valued at tens of billions of dollars. 

It’s unclear if the proposed concessions would go far enough for the DOJ, which would prefer asset sales or “deep structural changes” to Google’s ad tech business, according to the Journal. The department declined to comment. 

Google’s massive ad tech business has been under scrutiny from regulators in the US and EU. Google reportedly offered to allow third-party ad platforms on YouTube in an attempt to settle an ongoing antitrust investigation by the European Union without paying a hefty fine. In the US, Google also faces an ongoing lawsuit in Texas that alleges its ad tech business harms rivals by engaging in “false, deceptive, or misleading acts.”

Google said it’s been engaging with regulators but has “no plans to sell or exit” the ad tech business. 

“We have been engaging constructively with regulators to address their concerns,” said a Google spokesman in an emailed statement. “Rigorous competition in ad technology has made online ads more relevant, reduced fees, and expanded options for publishers and advertisers.”


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