Alphabet’s Google was accused with anti-competitive practises in its digital advertising business by EU antitrust regulators on Wednesday, and the company may have to sell a portion of this business to meet their concerns.
Google is the world’s most dominant digital advertising platform, accounting for 28% of worldwide ad revenue.(AP) Google is the world’s most prominent digital advertising platform, accounting for 28% of worldwide ad revenue.
Two years after opening an inquiry into the matter, the European Commission laid forth its claims in a statement of objections.
“The Commission takes issue with Google favouring its own online display advertising technology services to the detriment of competing advertising technology service providers, advertisers, and online publishers,” the EU competition watchdog said in a statement.
It claimed that Google had abused its power since 2014 by favouring its own ad exchange AdX in the ad selection auction conducted by its dominant publisher ad server DFP, as well as by favouring its ad exchange AdX in the manner its ad buying tools Google Ads and DV360 place bids on ad exchanges.
According to the EU competition watchdog, a behavioural remedy to stop anti-competitive practises is unlikely to be effective.
“The Commission’s preliminary view is thus that only Google’s mandatory divestment of a portion of its services would address the Commission’s competition concerns,” it stated.
According to research firm Insider Intelligence, Google is the most dominating digital advertising platform in the world, with a 28% market share of worldwide ad income.
Its advertising revenues in 2022, which include those from its search services, Gmail, Google Play, Google Maps, YouTube ads, Google Ad Manager, AdMob, and AdSense, totaled $224.5 billion, accounting for 79% of total revenues.
Google attempted to resolve the issue three months after the EU agency launched its inquiry, but authorities became unhappy with the slow pace and lack of major concessions, according to a person familiar with the subject.
