Google splits the advertising department, antitrust ‘circumvention’

Faced with the risk of being touched by the Department of Justice (DOJ) related to antitrust regulations, Google is proposing to separate its advertising technology business into a new company, under the parent company Alphabet.

Although still under Alphabet’s management, the move to this business will make a significant change to digital advertising, where Google is a big player on both sides of the market.

In 2021, parent company Alphabet reported revenue of $257 billion. Although best known for its search engine, Google’s main business is online advertising.

“The company is working closely with authorities in a constructive manner to address concerns,” a Google spokesperson said. “As we have previously stated, the company has no plans to sell or exit this business.”

However, Jonathan Kanter, director of DOJ’s antitrust unit, is taking a tough stance on this issue, saying that the matter should be taken to court for opinions as a basis for legal construction instead of accepting settlements. arrange.

Kanter personally will not participate in the Google investigation due to his history of working for the search giant’s competitors, but his colleagues may still agree with the leader.

In 2020, the DoJ filed a lawsuit against Google, marking the first time a serious antitrust charge has been brought against the company at the federal level.

Not to mention, Google is facing individual lawsuits from large coalitions of attorney generals in the states, typically the one led by Texas alleging an illegal monopoly in the online advertising market. .

Overseas, the company has also come under scrutiny from local governments, especially in Europe, where Google has to pay a lot of competition fees.

Vinh Ngo (According to CNBC)


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