The U.S. government is cracking down on advertising tech businesses. The company made a few concessions in order to head off a possible antitrust lawsuit from the U.S. Department of Justice, according to reports.
According to The Wall Street Journal, part of the ad tech business could be separated from the parent company. The search giant offers to reorganize the business as a new subsidiary within the same organization.
Some U.S. senators were planning to introduce a new bill targeting its ad tech platform, according to unconfirmed reports. Senator Mike Lee of Utah is said to be the leader of the effort to break the dominance of tech giants.
The bill was said to be about the business of auctioning and serving ads on the internet. The U.S. government has made it clear that they don't like how Google operates on that front. The EU antitrust regulators are scrutinizing the huge ad business of the internet giant.
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Regulators in the US are concerned that the Mountain View-based giant may be favoring its own business to the detriment of competitors. The bill was supposed to prevent tech giants from controlling the entire ad supply chain.
It is not known if the DOJ will accept the concessions or demand that the company sell off parts of its platform. WSJ reported that the U.S. government prefers the latter.
It's not certain if the ad tech business will be sold by the company. The company reported a 41% increase in the third quarter of 2021. The growth was due to advertisements.
Once we get a response, the article will be updated.
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