The European Commission (EC) plans to tackle Google’s online advertising power, by splitting thing up. In doing so, the EU is following America, which has been tackling the tech giant’s online ad monopoly for some time.
In a press statement, responsible European Competition Commissioner Vestager announced that Google violates EU regulations. This is because the tech giant favors its own online advertising services at the expense of competitors, advertisers and online publishers.
Google would favor its own ad exchange platforms by abusing access to information for rival bids for ad space. The tech giant would also disadvantage other ad exchange platforms by placing ad bids on its own platforms.
Stricter measures due to hard-learning
The EC finds Google stubborn when it comes to abusing its various monopoly positions. Meanwhile, the tech giant has already been fined three times totaling more than 8 billion euros.
If it is up to the EC, Europe will take measurements against the company and Google’s online advertising business must be forcibly hived off. This involves divesting Google Ads and DV360 from subsidiary DoubleClick, as well as ad marketplace AdX.
Vestager does, however, give Google a chance to respond to these allegations and take action.
Cooperation with US
In intending to spin off Google’s online ad business, the EC follows the standpoint of the U.S. Department of Justice. This department wants to end the tech giant’ s online ad monopoly. Earlier, a number of U.S. states came out against this. In her comments, Vestager indicated that the EC is working closely with the U.S. DoJ, as well as various competition authorities from various EU member states.
In a response, Dan Taylor, Google’s VP, indicated that breaking up online advertising technology could limit the availability of free and ad-supported content for everyone.
According to him, the current online ad marketplace allows for better pricing, innovation and robust competition. According to the Google VP, this would help everyone from advertisers and publishers to consumers.