EU Might Want Google To Break Up Its Ad Business – Take A Number
Europe’s antitrust regulator reportedly might seek to break up Google’s advertising-technology business, charging the company with abusing its dominance in online advertising technology.
The move joins the U.S. in accusing Google of abusing its dominance.
Utah Republican Senator Mike Lee led a bipartisan group of senators in 2022 to introduce legislation that would focus on “conflicts of interest” in advertising technology and force Google and others to break up their online ad businesses.
Online advertising and tools help companies like Google, Facebook’s parent Meta, Amazon, and others fund businesses.
Jeremy Haft, CRO at Digital Remedy, a performance media partner for brands and agencies, in an email to Search & Performance Marketing Daily, wrote: “The recent charges brought against Google by the European Union regarding its online advertising practices hold notable implications for brands and advertisers, and the privacy protection of consumers.”
“The outcome of these cases stands to influence the advertising industry, market competition, and the safeguarding of consumer privacy, while also encouraging a more vibrant adtech ecosystem through healthy competition.”
The European Commission, the European Union’s antitrust regulator, said Google “abused its dominant role in the buying and selling of online ads across third-party websites and apps to drive business and give other advantages to its own advertising auction house, known as an ad exchange,” reported The Wall Street Journal.
The EU commission believes Google must resolve the “inherent conflicts of interest” in the company’s role in digital advertising. One way is to sell off multiple parts of the company.
Google could, for instance, be required to sell off its ad server that works with website publishers and its advertising exchange, said Margrethe Vestager, the EU’s competition chief, the WSJ reported.
The company will have an opportunity to respond to the commission’s formal complaint before any final judgment is issued. If found in violation of EU competition law, Google could also face a fine of up to 10% of its annual worldwide revenue.
(1)
