The European Union (EU) has been hot on Google’s tails regarding its domination in the ad space, suggesting the divestiture of parts of its business as the only way to restore balance. Now, according to a new report from Bloomberg (via PYMNTS), Google is looking to contest the European Union’s (EU) attempts to force the tech giant to reorganize its ad business, rejecting the mandatory divestment in a letter to EU regulators.
This saga first began with the EU alleging that Google, exploiting its dominant position, favoured its ad exchange, AdX, and used its market power to give it a competitive advantage, potentially sidelining rival ad businesses. Moreover, the complaint also highlighted Google’s influence on both the sell and buy sides of the value chain, stating that the conflict of interest cannot be resolved through alternative means.
While the initial pieces of evidence were non-conclusive, the company could still face fines of up to 10% of its global sales and potential alterations to its operations if found guilty.
Google’s response
In response, Dan Taylor, the Vice President of Global Ads at Google, wrote a blog post addressing the European Commission’s (EC) objections, where he emphasized the competition in the digital ads market, stating that Google’s ad tech tools are vital for maintaining an open and accessible internet. Additionally, Taylor argued that dismantling these tools could limit the availability of free, ad-supported content, which benefits users, ad businesses and publishers.
“Google remains committed to creating value for our publisher and advertiser partners in this highly competitive sector. We disagree with the EC’s view and will respond accordingly,” said Taylor.
However, it is important to note that this isn’t the first time Google has found itself in hot waters with the EU. This is because the Commission previously fined Google €8.3 billion ($8.8 billion) for its dominance in the mobile operating systems and display advertising operations market.
2023-10-16 15:05:59