In recent months, the possibility of a breakup of Google’s ad-tech business has been a hot topic of discussion in the United States. Now, it seems that the conversation has made its way across the Atlantic, as European regulators contemplate a similar move.
For years, Google has dominated the online advertising space, thanks to its powerful ad-tech business. Through an intricate web of services and technologies, Google has been able to collect vast amounts of user data to serve highly targeted ads. This dominance has attracted the attention of regulators, who worry about the company’s potential anti-competitive practices and its ability to effectively control digital advertising by giving preferential treatment to its own platforms and services.
In the US, the Department of Justice (DOJ) filed a lawsuit against Google in October 2020, accusing the tech giant of maintaining an illegal monopoly. The lawsuit focused on Google’s dominance in search, but it also raised concerns about the company’s control over the ad-tech industry.
Now, the European Commission is reportedly considering a similar investigation into Google’s ad-tech practices. Margrethe Vestager, the EU’s competition chief, has previously expressed her concerns about the company’s advertising dominance, and is reportedly gathering information from industry players to determine whether or not an investigation is warranted.
If the European Commission does decide to move forward with an investigation, it raises the possibility of a breakup of Google’s ad-tech business. This would involve separating the company’s ad-serving and ad-buying products from its other services, potentially leading to the creation of a standalone ad-tech company or multiple smaller entities.
The potential breakup of Google’s ad-tech business would have significant implications for the digital advertising industry in both the US and Europe. It could open up the market to more competition, giving smaller players a chance to thrive and reducing Google’s stranglehold on the industry. This could lead to more innovation and better options for advertisers and publishers.
However, a breakup would also come with its own challenges. Advertisers and publishers have become accustomed to Google’s suite of ad-tech services, and a breakup could disrupt their operations and require them to make significant changes. Additionally, there is the question of whether or not a standalone ad-tech company would be able to effectively compete with Google, given the company’s vast resources and expertise.
Regardless of what happens, it is clear that the world is taking a closer look at Google’s ad-tech business. Regulators on both sides of the Atlantic are now exploring the possibility of a breakup, which could have far-reaching implications for both Google and the digital advertising industry as a whole. It remains to be seen how these investigations will play out, but one thing is for certain – the future of Google’s ad-tech business is now up for debate.
