What you need to know
- It is unlikely that Google will avoid an antitrust lawsuit from the US Department of Justice.
- The Department of Justice is said to be preparing to reject Google’s proposal to split its ad technology business.
- Google previously confirmed that it was working with regulators to address antitrust concerns, but added that it had no plans to sell the company.
Google is at risk of facing another legal battle arising from antitrust complaints filed by the US Department of Justice against its ad technology business, according to Bloomberg (Opens in a new tab).
The Department of Justice is said to be preparing to file a new antitrust lawsuit against Google over allegations that its ad technology work is stifling competition. This means regulators are likely to revoke concessions previously offered by the search giant to evade a court battle.
Earlier this week, it was reported that Google offered to separate parts of its ad technology business into a separate company under Alphabet. The concessions came in response to reports that some US senators were planning to introduce a new bill targeting the ad technology business.
Google’s ad technology platform acts as a kind of exchange for selling and placing ads on the web and mobile apps. However, it has come under scrutiny in recent months due to its market dominance.
Google told Android Central earlier this week that it was working with regulators to address their concerns. However, the company representative confirmed that Google has no plans to sell its beleaguered advertising business.
Antitrust regulators had previously warned Google that a lawsuit could be filed and that it had no intention of accepting settlements. So it’s no surprise that the latest proposal made by the Mountain View-based tech giant may not have gone down well with regulators.
According to Bloomberg, an antitrust lawsuit may be filed in the coming weeks. If paid through, it would add to a pile of antitrust complaints against Google. The UK Competition and Markets Authority is investigating whether the search giant is unfairly shutting down third-party ad servers. Last year, the European Commission also launched an investigation into Google’s online ad technology business for possible violations of EU competition rules.