SAN FRANCISCO: In a bid to avoid an antitrust lawsuit, Google reportedly offered the US government to split its ad-tech division, which enables businesses to run advertisements on the Internet and in apps, into a distinct firm under the Alphabet banner.
The pact was one of several concessions the internet giant granted the US Department of Justice to avoid legal actions alleging anti-competitive conduct, according to the Wall Street Journal.
The US Justice Department is looking into claims that "Google abuses its status as both a broker and auctioneer of digital advertisements to steer itself business at the expense of rivals," and it is putting the finishing touches on a lawsuit that may be revealed soon.
The US Justice Department and 11 states sued Google in October 2020 for antitrust crimes, claiming that the company weaponized its dominance in online search and advertising to stifle competition and hurt consumers. The lawsuit was 64 pages long and contained 194 numbered items. Since its lawsuit against Microsoft more than 20 years ago, the lawsuit is the US government's greatest action. This follows a 15-month inquiry and may mark the beginning of additional antitrust cases against other Big Tech firms.
A Google spokeswoman responded to the Friday WSJ report by saying that they had been working cooperatively with regulators to allay their concerns.
"We have never intended to sell or leave this firm, as we have already stated. Online advertising are now more relevant because to fierce competition in ad technology, which has also led to lower costs and more possibilities for publishers and advertisers "The firm representative was quoted in the article as stating.
Google is being investigated for antitrust violations not only in the US but also in the UK and India.
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