Google reportedly offered the US government to split its ad-tech business, which allows companies to place ads on the Internet and apps under the Alphabet umbrella, into a separate entity, to avoid an antitrust lawsuit Can you
According to the Wall Street Journal, the deal was part of several concessions the tech giant offered to the US Justice Department to avoid lawsuits alleging anti-competitive practices.
The US Department of Justice is investigating allegations that “Google abusing its role as both a broker and auctioneer of digital ads to drive business itself at the expense of rivals”, and is preparing a lawsuit that will soon be launched. can be declared.
In a 64-page complaint with 194 numbered items, the US Department of Justice and 11 states sued Google for breach of antitrust in October 2020, alleging it used online search to eliminate competition and harm consumers. and weaponized his dominance in advertising.
The lawsuit is the US government’s biggest move since its lawsuit against Microsoft more than 20 years ago. It comes after a 15-month investigation and could be the opening scene of more antitrust actions against other Big Tech companies.
Responding to the WSJ report that surfaced on Friday, a Google spokesperson said they are engaging constructively with regulators to address their concerns.
“As we have said before, we have no plans to sell or exit this business. Tough competition in advertising technology has made online ads more relevant, reduced fees and expanded options for publishers and advertisers. The company spokesperson had said in the report.
Google is facing anti-trust scrutiny not only in the US, but also in the UK India very.
The UK competition watchdog launched a second investigation into Google’s unfair practices in advertising technology in May, after launching an investigation into Google and Meta’s ‘Jedi Blue’ agreement.
The Competition and Markets Authority (CMA) is investigating whether Google broke the law by restricting competition in the digital advertising technology market.
“We are concerned that Google may be using its position in advertising technology to favor its services to the detriment of its competitors, its customers and ultimately consumers,” said Andrea Coselli, chief executive of CMA.
The CMA is assessing whether Google’s ‘advertising tech stack’ practices could distort competition.
In July 2021, the French regulator closed a similar case against Google for enforcing fine and safe commitments.
In March this year, the Competition Commission of India (CCI) ordered an inquiry into complaints against Google for abusing its dominant position in the Indian online news media market relating to news referral services and Google ad-tech services.
The CCI observed that prima facie, these allegations of abuse of key position are within the purview of the Competition Act, 2002 and require detailed investigation by the Additional Director General.
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