Google holds a dominant position in the online advertising market, which has raised concerns and problems for the company. The European Union has expressed its concern about possible violations of antitrust laws by the search engine giant and to the need for split its advertising activities.
Strict EU measures against Google: endangering its advertising activities
In a detailed message, the European Union informed Google of a ” preliminary notice “The EU is concerned that Google may have breached antitrust rules in relation to its advertising activities. The EU’s concern is that Google may have favored its own advertising in its products, creating a competitive disadvantage.
In particular, the EU highlights the operation of the AdX ad exchange system ad exchange system. The DFP manages ad selection via AdX, while Google Ads and DV360 provide buying tools for advertisers who also serve ads via AdX.
This configuration excludes other ” ad exchanges “and further reinforces Google’s dominance.
According to the EU, a simple ” behavioral corrective measure ” would not suffice in this case, and it would be necessary for Google to spin off and dismantle its advertising business, resulting in the exit of the company’s advertising products.
The Commission’s preliminary view is that a behavior-based remedy is unlikely to be effective in preventing Google from continuing these self-referencing practices or adopting new ones. Google is present on both sides of the marketwith its ad server for publishers and its ad buying toolsand holds a dominant position in both fields.
The company operates the largest ad exchange market, which creates inherent conflicts of interest. According to the Commission’s preliminary opinion, only the compulsory divestiture of part of Google’s services could address the competition concerns.
This does not necessarily mean that the company is in danger, but it is important to point out that this preliminary opinion should be a source of concern for Googleas it is already the subject of in-depth investigations into its dominant position.
If Google were to separate itself from its advertising activities, this could result in a considerable loss, as according to several reports, these activities represent nearly 80% of its sales. Google ads are not only stand-alone products, but are also integrated with other company services.
It remains to be seen whether this preliminary opinion will be taken into account in the final decision, and whether it will be possible to find common ground between Google and the EU, thus satisfying both parties.