Google’s Ad Tech Business Likely to Face Formal EU Probe By Year-End
Google could face its biggest regulatory threat, with EU antitrust regulators set to open a formal investigation into its lucrative digital advertising business before the end of the year, reported Reuters. It would mark a new front by the EU competition enforcer against Google. It has in the last decade fined the company more than […]
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Google could face its biggest regulatory threat, with EU antitrust regulators set to open a formal investigation into its lucrative digital advertising business before the end of the year, reported Reuters.
It would mark a new front by the EU competition enforcer against Google. It has in the last decade fined the company more than 8 billion euros ($9.8 billion) for blocking rivals in online shopping, Android smartphones and online advertising.
An EU probe would focus on Google‘s position vis-a-vis advertisers, publishers, intermediaries and rivals, one of the people said, indicating deeper scrutiny than the French antitrust agency’s case concluded in June.
Google made $147 billion in revenue from online ads last year, more than any other company in the world. Ads on its properties, including search, YouTube and Gmail, accounted for the bulk of sales and profits.
Also Read: Google Puts User Experience First
About 16 per cent of revenue came from its display or network business, in which other media companies use Google technology to sell ads on their website and apps.
Both units are under fire. The US Justice Department, joined by some states, sued Google last year for abusing its dominance in search ads. A group of states led by Texas in a later lawsuit focused on anti-competitive behaviour on the network side of the house.
France last week settled with Google for $268 million and various commitments over similar allegations related to the network business, and the unit also must work closely with Britain’s competition regulator on upcoming software changes as part of a settlement reached days later.
A new EU inquiry could end up targeting all of Google’s ad empire. Market researcher eMarketer expects Google to control 27 per cent of global online ad spending this year, including 57 per cent for search ads and 10 per cent of display.
