European Union Antitrust regulator European Commission has dealt a blow to Google’s advertising business. In an unprecedented decision it has said Google Must sell some of its advertising business to address competition concerns. Vice President of the European Commission Margaret Vestager Said that Google has a very strong market position in the online advertising technology field. It collects users’ data, it sells advertising space, and it acts as an online advertising intermediary. So Google is present at almost all levels of the so-called edtech supply chain. Our initial concern is that Google may have used its market position to favor its own arbitration services. This not only harmed Google’s competitors, but also harmed the interests of publishers, as well as increased the cost of advertisers. If confirmed, Google’s practices would be illegal under our competition rules.
“Google is representing the interests of both buyers and sellers. And at the same time, Google is setting the rules for how demand and supply should be met,” he told a news conference. “It gives rise to underlying and pervasive conflicts of interest,” he added.
The Commission’s decision comes from a formal investigation that began in June 2021, finding that Google breached EU competition rules by favoring its online display advertising technology services at the expense of rival publishers, advertisers and ad technology services. done or not. YouTube was a focus of the commission’s investigation, which looked into whether Google was using the video-sharing site’s dominant position to support its own ad-buying services by banning rivals.
The commission said in preliminary findings that since at least 2014, Google has abused its dominant positions:
* favoring its own ad exchange AdX in an ad selection auction conducted by its dominant publisher ad server DFP, for example, by notifying AdX in advance of the best bid price from competitors that it will need to win the auction Had to beat
* Favoring its ad exchange AdX as your ad buying tool google ads and DV360 bid on ad exchanges. For example, Google Ads was eschewing competing ad exchanges and placing bids primarily on AdX, thus becoming the most lucrative ad exchange.
The commission said it is concerned that Google’s alleged deliberate conduct is aimed at giving AdX a competitive advantage and could lead to the closure of rival ad exchanges. This would have reinforced AdX’s central role in the company’s edtech supply chain and Google’s ability to charge higher fees for its service.
some silver lining
However, the European Commission stated that after an investigation its preliminary view is that “only a compulsory divestment by Google of part of its services” would satisfy the concerns. It is reportedly the first time that the EU bloc has asked a tech giant to divest key parts of its business for breaching antitrust laws.
What are Google’s options
Google can now defend itself by presenting its stand before the Commission issues its final decision. The company said it disagrees with the finding and “will respond accordingly.” It added that the EU probe focused on a narrow part of its advertising business.
“Our ad technology tools help websites and apps fund their content, and enable businesses of all sizes to effectively reach new customers,” said Dan Taylor, Google Vice President of Global Ads. “Google is committed to creating value for our publisher and advertiser partners in this highly competitive field.”
(with agency inputs)
“Google is representing the interests of both buyers and sellers. And at the same time, Google is setting the rules for how demand and supply should be met,” he told a news conference. “It gives rise to underlying and pervasive conflicts of interest,” he added.
The Commission’s decision comes from a formal investigation that began in June 2021, finding that Google breached EU competition rules by favoring its online display advertising technology services at the expense of rival publishers, advertisers and ad technology services. done or not. YouTube was a focus of the commission’s investigation, which looked into whether Google was using the video-sharing site’s dominant position to support its own ad-buying services by banning rivals.
The commission said in preliminary findings that since at least 2014, Google has abused its dominant positions:
* favoring its own ad exchange AdX in an ad selection auction conducted by its dominant publisher ad server DFP, for example, by notifying AdX in advance of the best bid price from competitors that it will need to win the auction Had to beat
* Favoring its ad exchange AdX as your ad buying tool google ads and DV360 bid on ad exchanges. For example, Google Ads was eschewing competing ad exchanges and placing bids primarily on AdX, thus becoming the most lucrative ad exchange.
The commission said it is concerned that Google’s alleged deliberate conduct is aimed at giving AdX a competitive advantage and could lead to the closure of rival ad exchanges. This would have reinforced AdX’s central role in the company’s edtech supply chain and Google’s ability to charge higher fees for its service.
some silver lining
However, the European Commission stated that after an investigation its preliminary view is that “only a compulsory divestment by Google of part of its services” would satisfy the concerns. It is reportedly the first time that the EU bloc has asked a tech giant to divest key parts of its business for breaching antitrust laws.
What are Google’s options
Google can now defend itself by presenting its stand before the Commission issues its final decision. The company said it disagrees with the finding and “will respond accordingly.” It added that the EU probe focused on a narrow part of its advertising business.
“Our ad technology tools help websites and apps fund their content, and enable businesses of all sizes to effectively reach new customers,” said Dan Taylor, Google Vice President of Global Ads. “Google is committed to creating value for our publisher and advertiser partners in this highly competitive field.”
(with agency inputs)