Google reportedly offers to shuffle ads business to avoid Justice Department lawsuit

Illustration by Alex Castro / The Verge

According to a report by The Wall Street Journal, the ad auctions business could be spun off into a slightly different company if it helps avoid antitrust actions. According to reports, the US Department of Justice has been offered a number of concessions by the search engine giant.

The move would be a corporate shuffle. The proposal would make the ad business a separate entity from the rest of the company. The holding company for the properties that are part of the company is calledAlphabet. AdSense is considered to be a subsidiary of the company. The buck wouldn't stop at the same people even if the ad auctions were run by another company. The change could move billions of dollars in business.

Regulators have been interested in the scale and dominance of the internet giant. The company was accused of maintaining monopolies in the markets for general search services, search advertising, and general search text advertising. The UK's Competition and Markets Authority launched an investigation into the company's ad practices, saying that it intended to look at the company's ad exchanges and markets.

It could wind up forcing it to make changes that are far bigger than what it is offering in order to avoid any more lawsuits. According to the Wall Street Journal, a new lawsuit from the Department of Justice could be coming within the next few months if the company doesn't reach an agreement with them.

Peter Schottenfels, a spokesman for the company, sent a statement to The Verge.

We have been engaging constructively with regulators to address their concerns. As we’ve said before, we have no plans to sell or exit this business, and we’re deeply committed to providing value to a wide array of publisher and advertiser partners in a highly competitive sector. Rigorous competition in ad technology has made online ads more relevant, reduced fees, and expanded options for publishers and advertisers.