In the midst of an investigation carried out by the US Department of Justice against the monopolistic behavior of large technology firms such as Aplhabet and Meta, Google proposed to the judicial entity to separate part of its advertising technology business so that it can be offered under an independent company, but a subsidiary of its parent company.
According to information from the Wall Street Journal, Google could face a lawsuit in mid-2022 for allegedly abusing its role as a broker and auctioneer of ads on the web and in applications: a position that places the Alphabet giant as the company that, together a Meta, dominates at least 60% of the current advertising market.
But Google has no intention of selling its technology or giving up its stake to its competitors, despite ongoing investigations in the European Union against it over the way customers can buy ads on YouTube. According to a company spokesperson, in this specific case, the technology company’s idea is to allow the acquisition of advertising to be done directly with the video service and not with traditional Google tools.
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In addition to the investigation carried out by the US Department of Justice to determine if the company is engaging in monopolistic practices, Google also has a second open case with the same portfolio two years ago, where it tries to clarify the accusations that they maintain that the company also engages in anti-competitive behavior in the online search market. According to Statista data, the Mountain View organization would hold an estimated 92.47% market share.
Regarding Google’s segment as an intermediary in the sale of ads on other websites and applications, although it is not clear whether the company will maintain its offer to create a subsidiary that handles the business (which could change the industry of online advertising), it is known that this item means USD$31.7 billion in revenue for the company. Or what is the same: 12% of the total of Alphabet.