August 8, 2022
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Google may disable advertising unit to avoid US antitrust lawsuit

Google is ready to spin off its advertising division to another company to avoid an antitrust lawsuit from the US government. According to the newspaper Wall Street JournalOne of the proposals from tech companies is to change that Google Ads In another company that continues under Alphabet management, holding Google’s parent company.

Even so, it’s not yet clear whether any move not to sell the company’s assets would be enough to stop the U.S. Justice Department from investing against the company’s practices. The investigations point to Google’s alleged role in dominating the online advertising business.

According to people interviewed by the newspaper, authorities are continuing to investigate the company and are preparing a lawsuit that could be filed in the coming months alleging the Mountain View, California giant’s anti-competitive practices.

A Google spokesperson said the company is working constructively with authorities to resolve the aforementioned issues and has no plans to sell or exit the advertising business. “Fierce competition in the tech advertising industry has made online advertising more relevant, with lower fees and expanded options for publishers and advertisers,” the newspaper said in a note.

In addition to the US investigations, Google is also being investigated in the European Union over its YouTube advertising practices, according to WSJ sources. One of the alternatives the company has raised is to allow advertisers to sell ads directly through the platform, without the need to use Google Ads.