The European Union has been investigating Google’s ad-tech business for a few years now, and it seems like the EU is now taking serious steps towards breaking up the search giant’s advertising business. The EU recently published a report that describes potential remedies for Google’s antitrust concerns, and the report suggests that the EU might force Google to sell off its dominant ad-tech business.
So what is ad-tech, and why is the EU targeting Google’s ad-tech business? Ad-tech refers to the technology that powers online advertising, including programmatic advertising, ad networks, and data management platforms. Google’s ad-tech business is the largest in the world, generating billions of dollars in revenue every year. However, the EU has been concerned that Google’s dominance in this market stifles competition and harms smaller players in the digital advertising industry.
The EU’s report suggests that Google’s practices in the ad-tech market violate antitrust laws in several ways. For one, the EU alleges that Google uses its market power to steer advertisers towards using its own tools and services, rather than allowing them to choose from a range of options. The EU is also concerned that Google’s dominance in ad-tech gives it an unfair advantage in the online advertising market, which harms other players in the ecosystem.
To address these concerns, the EU is considering several measures. One possibility is that the EU could force Google to sell off parts of its ad-tech business, allowing other companies to compete more fairly. The EU may also impose fines on Google for its anticompetitive practices and require the company to change its business practices going forward.
This isn’t the first time that the EU has gone after Google for antitrust violations. In the past, the EU has fined Google billions of dollars for alleged antitrust violations in its search and Android businesses. Google has pushed back against these accusations, arguing that it doesn’t violate antitrust laws and that its dominance is simply the result of providing a superior product.
The EU’s latest moves against Google’s ad-tech business are likely to face pushback from the company, as well as from the US government. The US has previously criticized the EU’s antitrust actions against US tech companies, arguing that they unfairly target American firms. However, the EU is likely to press ahead with its investigation, and it remains to be seen what impact this will have on Google’s advertising business in Europe and beyond.