Google may move the advertising division to a separate structure

This was reported by sources close to the company to The Wall Street Journal. According to them, this is a sign that the legal and regulatory pressure on the tech giant is reaching its climax.

The new organization could potentially be valued in the tens of billions of dollars. Everything will depend on what assets Google will remove from its control and include in this structure.

Whether this proposal will be an effective measure to prevent a lawsuit is difficult to say. Antitrust officials made it clear that they were interested in fundamental changes in the conduct of Google's advertising business, and not in some formal structural changes.

The US Department of Justice is currently investigating Google for abusing its role as a digital advertising broker.

Antitrust watchdogs have long awaited a second lawsuit against the company. Two years ago, a case was brought against Google's dominance in online search. Similar claims, about doing business to the detriment of fair competition, now want to present the tech giant in the field of advertising.

As a result of the investigation, Google is awaiting the judge's decision on the motion to dismiss the case, on the grounds that the lawsuit is "full of inaccuracies and has no legal force."

The company says it is "constructively engaging with regulators" and confirms that it "has no plans to sell or exit this business." And yet, we see that some new solutions that Google began to study closely.

Market insiders believe any move by Google to restructure part of its ad tech business could shake up the digital ad industry.

According to eMarketer, advertisers plan to spend more than $600 billion on digital advertising worldwide this year, and Google plays a major role as a broker in these sales.

Last year, Google generated $31.7 billion in ad sales mediated across other sites and apps, about 12% of Alphabet's total revenue.