The possible dismantling of google

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In the United States, the Senate has just introduced a bill to strengthen competition in online advertising. 

Indeed, a bipartisan group of senators, led by Utah Republican Mike Lee, introduced a bill on Thursday that would fight against conflicts of interest in the advertising technology sector, and force Google to address its dominant activity in the field of online advertising.

The bill is one of the most aggressive legislative proposals as it aims to limit the power of large technology companies.

The Digital Advertising Competition and Transparency Act seeks to prohibit companies handling more than $20 billion in digital advertising transactions per year from participating in more than one part of the digital advertising ecosystem.

Google operates tools that help businesses sell and buy ads. Indeed, the American giant is often criticized for its intervention at all levels of ad auctions: the company manages them, but also offers tools to help third parties sell or buy ads. A situation that resulted in an antitrust lawsuit filed by more than a dozen U.S. attorneys general in 2020. If this new law came to pass, Google would not be able to stay in all these activities.

According to the Wall Street Journal, to circumvent that situation, the tech giant could propose to spin off some of its advertising activities into a new company still under the control of its parent company Alphabet. 

Clearly, it would be nothing more than an internal restructuring, in order to avoid punishment from the reproaches of the Department of Justice and antitrust authorities.

It remains to be seen whether this proposal, which Google has not confirmed publicly, will be convincing enough for the Department of Justice. 

 

By Mélissa Walehiane

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