Google reportedly proposed to separate its ad tech business just to avoid a possible anti-trust lawsuit from the U.S. Department of Justice.
This business adjustment proposal appeared after some U.S. senators said they plan to introduce a new law that will focus on the advertising technologies of various tech firms.
The new law specifically aims to prevent tech companies with more than $20 billion in digital ad revenue from acting as brokers for sellers and buyers.
Because of this, Google is now negotiating with DOJ to avoid a potential anti-trust lawsuit.
Google Ad Tech Business To Be Divided?
According to Android Central's latest report, the latest plan of Google to separate its ad tech business involves another company owned by Alphabet.
As of press time, the exact name of the new Alphabet-owned tech company hasn't been disclosed.
If ever the U.S. Department of Justice accepts the proposed ad tech business adjustment of Google, the tech firm will be able to move around its advertisement revenue.
But, based on the statements made by DOJ Antitrust Chief Jonathan Kanter, Google has a long way before its proposal is accepted.
Previously, Kanter said they prefer going to court than accepting settlements offered by tech firms.
"In short, we will pursue remedies - not settlements. We cannot compromise if there is a violation of the law," said the DOJ official via CNBC.
Google Ad Revenue Record in 2021
In 2021, Google's parent company announced that its ad revenue increased by 41%. Alphabet stated that they could generate around $65 billion in the third quarter of 2021.
Of course, Google is not the only one contributing to this massive advertising revenue increase. YouTube also experienced a sudden growth in its own ad financial gains, allowing it to contribute $7 billion.
Because of this, U.S. regulators now believe that Google and other tech firms experiencing ad tech revenue growth are favoring their businesses, which prevents healthy market competition.
On the other hand, the search engine giant agreed to pay $90 million to Google App Store developers.
Meanwhile, Google KakaoTalk updates have been suspended after the application was found using external links for payment options.
For more news updates about Google and its issue with the U.S. DOJ, always keep your tabs open here at TechTimes.
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Written by: Griffin Davis
