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\n

Google has reportedly offered to spin off its ad auctions business, which lets companies buy advertising space on the web and in search results, into a slightly more separate company if it\u2019ll help avoid antitrust actions, according to a report by The<\/em> Wall Street Journal<\/em><\/a>. The offer is reportedly part of multiple concessions Google has offered the US Department of Justice, as it looks to avoid further lawsuits alleging anti-competitive practices.<\/p>\n
According to the WSJ<\/em>, the move would be a corporate shuffle. Rather than spinning off parts of its ad business into a completely separate company or selling them altogether, the proposal would make them a separate Alphabet company. Alphabet is the holding company for Google\u2019s properties, such as Google itself, Waymo, and DeepMind. (Things like YouTube, Pixel, and, of course, AdSense are considered to be subsidiaries of the Google entity.) So while the ad auctions might not be run by Google anymore, the buck would still eventually be stopping at the same people. According to the WSJ<\/em>, the change could move \u201ctens of billions of dollars\u201d in business. <\/p>\n
\nThe revenue would still end up on the same quarterly report<\/q><\/aside>\n<\/div>\nGoogle\u2019s dominance and scale in the app and web advertising industry have drawn regulators\u2019 attention before. In 2020, the US government filed antitrust charges<\/a> against the company, saying that it was \u201cunlawfully maintaining monopolies in the markets for general search services, search advertising, and general search text advertising.\u201d The UK\u2019s Competition and Markets Authority recently launched an investigation<\/a> into Google\u2019s ad practices as well, saying that it intended to look at the company\u2019s ad exchanges and markets.<\/p>\n
Google likely wants to avoid any further lawsuits and enforcement actions, which could wind up forcing it to make changes far bigger than the ones it\u2019s offering. The<\/em> Wall Street Journal<\/em> reports that a new lawsuit from the Department of Justice could be coming within the next few months if it doesn\u2019t come to some sort of agreement with the company. <\/p>\n
Reached for comment, Google spokesperson Peter Schottenfels sent The Verge<\/em> the same statement provided to the Wall Street Journal<\/em>: <\/p>\n
\nWe have been engaging constructively with regulators to address their concerns. As we\u2019ve said before, we have no plans to sell or exit this business, and we\u2019re deeply committed to providing value to a wide array of publisher and advertiser partners in a highly competitive sector. Rigorous competition<\/a> in ad technology has made online ads more relevant, reduced fees<\/a>, and expanded options<\/a> for publishers and advertisers.<\/p>\n<\/blockquote>\n<\/div>\n

<\/br><\/code><\/p>\n
Source: https:\/\/www.theverge.com\/2022\/7\/8\/23200387\/google-ad-auctions-spin-off-alphabet-antitrust-regulations<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"
Source: Google has reportedly offered to spin off its ad auctions business, which lets companies buy advertising space on the web and in search results, into a slightly more separate company if it\u2019ll help avoid antitrust actions, according to a report by The Wall Street Journal. The offer is reportedly part of multiple concessions Google […]<\/p>\n","protected":false},"author":1,"featured_media":9564,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"pagelayer_contact_templates":[],"_pagelayer_content":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21,8],"tags":[10],"class_list":["post-9563","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-google","category-technology","tag-google"],"yoast_head":"\nGoogle reportedly offers to shuffle ads business to avoid Justice Department lawsuit - Science and Nerds<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/scienceandnerds.com\/2022\/07\/09\/google-reportedly-offers-to-shuffle-ads-business-to-avoid-justice-department-lawsuit\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Google reportedly offers to shuffle ads business to avoid Justice Department lawsuit - Science and Nerds\" \/>\n<meta property=\"og:description\" content=\"Source: Google has reportedly offered to spin off its ad auctions business, which lets companies buy advertising space on the web and in search results, into a slightly more separate company if it\u2019ll help avoid antitrust actions, according to a report by The Wall Street Journal. 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