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Google suggests moving its advertising company to Alphabet to ensure that regulators are kept in check.

However, is there any tangible distinction between Google and its parent Alphabet? Alphabet?

The US Justice Department is gearing for an antitrust suit against Google’s advertising business. A recent report by the Wall Street Journal outlines the “concession” Google is proposing as a response to the probe. Google may decide to split its ad business and transfer it to its subsidiary company Alphabet. Alphabet.

The core in the WSJ report reads: “As part of one deal, Google has proposed splitting segments of its business that auctions ads and puts them on apps and websites into a separate entity that would fall under the Alphabet umbrella, a few of the respondents claimed. This entity could be worth hundreds of billions , based on the assets it holds.”

The aim of “splitting the ad division” ad division doesn’t necessarily make the entire advertising division distinct from Google; however, it undermines Google’s complete control of the advertising business. Currently, the company serves as a broker and auctioneer for advertisements–which is what the DOJ has a problem with. Google produces tools that Who can use to cover each of those on the “buy” and “sell” side of the advertising industry on the internet that naturally push advertisers who use Google’s buy tools towards advertisers selling ads using the auction system that Google has developed. All online platforms function similarly. Amazon offers an interface through which Amazon product sellers sell their products to Amazon customers who purchase their products. Uber has a system that serves riders and drivers. However, the rules are different if you’re a monopoly in contrast to being “very massive.”

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The proposed solution could allow the “sell” part with Google Ads to move to Alphabet while the “buy” part remains with Google. Thought, I believe that this move could open up the possibility to Google to connect to advertising systems that aren’t Google’s. However, it’s unclear what the implications are if Google/Alphabet is granted a mandate to be open.

Is there a distinction between “Google” and “Alphabet?”

In response to this report, Google responded with a Google spokesperson stating to The Wall Street Journal, “We are working positively with regulators to resolve their concerns. We’ve stated before that we don’t have plans to sell or leave the enterprise.” This spokesperson also said: “Rigorous competition in ad technology has led to online ads becoming more relevant, with lower fees and expanded options for advertisers and publishers.”

Without an obligation to allow the ads industry, It’s unclear what kind of changes could be brought about by the transfer of a part of Google’s advertising business from Google to the parent company of Google. Some casual observers may think that an Alphabet spinoff is a change. Still, this author, for instance, the more knowledgeable Google-watchers, cannot identify any tangible differences between “Google” and “Alphabet.” In this case, the head of advertising will cease in the direction of Google, the CEO Sundar Pichai, and would instead report on behalf of Alphabet, the CEO Sundar Pichai. Google, along with Alphabet, also share the same CFO and the identical stock symbol. There is no way that a Google or Alphabet business could be a self-sustaining enterprise without Google’s massive pile of advertising revenue to throw around. Alphabet CEOs are awarded the highly sought-after title of “CEO,” but they must submit for Alphabet’s financial needs and the Google/Alphabet CEO.

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The idea of presenting the idea of an Alphabet spinoff as an example of separation would not work with the way Alphabet has performed previously. Independent Alphabet businesses often operate as one unit. It is often seen in the form of Deepmind technology used in “Google” products that are branded, with Google Fiber’s continuing utilization of the “Google” brand as well as Alphabet’s “CapitalG” venture capital firm that is announcing and declaring, “As part of Alphabet we have exclusive access to Google’s knowledge and knowledge.” Google will have plenty of work to clarify the significance of the Alphabet distinction beyond the minor details on an organization chart.

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