Google has proposed to spin off part of its business that auctions and places ads on websites and apps as a concession to avoid a possible US antitrust lawsuit.
The antitrust lawsuit accuses Google of abusing its market muscle to impede rivals in the advertising technology business.
Google is now offering to split part of its advertising technology business into a separate company under the Alphabet umbrella. The company is expected to be valued at tens of billions of dollars.
Google’s parent company Alphabet said it was working with regulators to address their concerns, adding that it has no plans to sell or exit the ad-tech business.
“We’re deeply committed to providing value to a wide array of publishers and advertiser partners in a highly competitive sector,” Alphabet said in a statement.
Brandon Kressin, an antitrust lawyer who represents publishers and companies in the field of ad technology, appears to be skeptical of Google’s concession deal, saying that the offer will still not be enough to address antitrust concerns.
“I don’t see how spinning off the business but keeping it under the Alphabet umbrella would solve the issue. Google would still have an incentive to self-preference,” Kressin said.
The sources for this piece include an article in Reuters.