According to a Wall Street Journal report, Google plans to outsource its advertising business to avoid another lawsuit by the Justice Department. Through the advertising business, companies can acquire advertising space on the Internet, as well as in the search results of the search engine.
Essentially, the business would then become a separate company from Alphabet. According to the WSJ, this restructuring also means moving tens of billions of dollars in business assets.
Google likely wants to avoid further lawsuits and enforcement actions that could force the company to make far bigger changes than the ones it’s now offering itself. Recently, the company had repeatedly been accused of allegations of competitive advantages.
Google spokesman Peter Schottenfels on this:
We engaged constructively with regulators to address their concerns. As we have said, we have no plans to sell or exit this business and we are fully committed to bringing value to a wide range of publishers and advertising partners in a highly competitive sector. Fierce competition in ad technology has increased the relevance of online ads, lowered fees, and expanded opportunities for publishers and advertisers.
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