August 14, 2022

What you need to know

  • Google has reportedly offered a few concessions to thwart a potential antitrust lawsuit by the Department of Justice.
  • The company is said to offer to split parts of its ad tech business into a separate firm under Alphabet.
  • However, the U.S. government could prefer asset sales to Google’s concessions.

Google may be feeling the pressure from the U.S. government’s crackdown on its advertising tech business. The company has reportedly made a few concessions in an attempt to head off a possible antitrust lawsuit from the U.S. Department of Justice targeting its digital ad technology platform.

According to The Wall Street Journal (opens in new tab), Google has proposed to separate parts of its ad tech business into a new firm under Alphabet, its parent company. This means the search giant simply offers to move money around by reorganizing that business as a new subsidiary within the same organization.