EU Antitrust Order on Google's AdTech Business: Break-Up Unlikely for Now
3 Sources
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EU break-up order to Google unlikely for now, sources say
EU antitrust officials are considering ordering Alphabet's Google to end anti-competitive practices in its adtech business, but will not order a breakup as they had previously warned, people with direct knowledge of the matter said. European Union regulators are due to issue a decision with a hefty fine in the coming months after antitrust chief Margrethe Vestager last year threatened to break up Google's lucrative adtech business. Also Read: What was the key to Bill Gates' and Microsoft's success? He says it was his focus on... If this threat had been carried through in what would be a first for an antitrust case, it would have been the harshest regulatory penalty to date against Google, after Vestager charged it with favouring its own advertising services. But competition officials will likely not issue a breakup order because of the complexity involved, the people said. A break-up order could come at a later stage if Google continues its anti-competitive practices, they said, pointing to a precedent setting case involving Microsoft two decades ago. The European Commission's decision could evolve, they added. An EU decision is unlikely to come before Vestager leaves office in November, they said, but is still theoretically possible. The Commission and Google, which has racked up 8.25 billion euros ($9.14 billion) in EU antitrust fines in the last decade, declined to comment. Also Read: WhatsApp Business new verified badge and AI tools: All you need to know Google's 2023 advertising revenue, including from search services, Gmail, Google Play, Google Maps, YouTube, Google Ad Manager, AdMob and AdSense, amounted to $237.85 billion or 77% of total revenues. It is the world's dominant digital advertising platform. Vestager had suggested that Google could sell its sell-side tools DFP and its own ad exchange AdX because of the conflicts of interest as it also owns ad buying tools Google Ads and DV360, which places bids on ad exchanges. She said the company had allegedly illegally favoured its own ad exchange AdX in matching auctions, abusing its dominance since 2014. Google is currently the target of an antitrust trial brought by the U.S. Department of Justice which claims that it sought to monopolise markets for publisher ad servers and advertiser ad networks, and tried to dominate the market for ad exchanges which sit in the middle.
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EU antitrust order to Google's adtech business unlikely for now: Report
EU antitrust officials are considering ordering Alphabet's Google to end anti-competitive practices in its adtech business, but will not order a breakup as they had previously warned, people with direct knowledge of the matter said. European Union regulators are due to issue a decision in the coming months after antitrust chief Margrethe Vestager last year threatened to break up Google's lucrative adtech business. Click here to connect with us on WhatsApp If this threat had been carried through, it would have been the harshest regulatory penalty to date against Google, after Vestager charged it with favouring its own advertising services. But in what would be a first for an antitrust case, competition officials will likely not issue a breakup order because of the complexity involved, the people said. A break-up order could come at a later stage if Google continues its anti-competitive practices, they said, pointing to a precedent setting case involving Microsoft two decades ago. The European Commission's decision could evolve, they added. More From This Section Boeing workers strike after 96% vote for walkout in test for new CEO EAM Jaishankar reveals his father was on a hijacked flight in 1984 Gunmen kill 14 people in Afghanistan's Shiite-majority area; 6 wounded Nasa to establish Lunar Time Standard to set standard time system for Moon WHO grants first mpox vaccine approval to enhance response in Africa An EU decision is unlikely to come before Vestager leaves office in November, they said, but is still theoretically possible. The Commission declined to comment. Google did not respond to a request for a comment. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.) Also Read Google tests 'Desktop Windowing' on Android tablets for PC-like experience Top EU privacy regulator opens investigation into Google's AI compliance Google extends support to help developers prevent app sideloading: Report Google introduces AI-driven podcast feature 'Audio Overview' in NotebookLM Google to release Android 15 update with these new features in coming weeks
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How European Union may have 'bad' but not 'dangerous' news for Google - Times of India
European Union (EU) antitrust regulators are reportedly considering imposing hefty fines on Google for anti-competitive practices in its adtech business. According to a report by news agency Reuters, "EU antitrust officials are considering ordering Alphabet's Google to end anti-competitive practices in its adtech business, but will not order a breakup as they had previously warned." The report quotes sources with direct knowledge of the matter. Last year, EU antitrust chief Margrethe Vestager had warned that Google's adtech business could face a breakup, a move that would have been unprecedented in antitrust cases.However, the complexity involved has led regulators to reconsider this option. Google may face hefty fine, but escape 'break-up' While a breakup order is reported to remain a possibility in the future if Google continues its anti-competitive practices, the EU is likely to impose heavy fine instead. The decision could be announced in the coming months, following Vestager's departure from office in November. Vestager had suggested that Google could sell its sell-side tools DFP and its own ad exchange AdX because of the conflicts of interest as it also owns ad buying tools Google Ads and DV360, which places bids on ad exchanges. She claimed that the company had allegedly illegally favoured its own ad exchange AdX in matching auctions, abusing its dominance since the year 2014. Google has been fined up to 8.25 billion euros ($9.14 billion) in EU antitrust cases in the last decade. Google has faced multiple antitrust investigations in recent years, accumulating billions of euros in fines. The company's dominance in the digital advertising market has raised concerns among regulators. The EU's decision could have far-reaching implications for the advertising industry, as Google's practices have significantly impacted competition. The TOI Tech Desk is a dedicated team of journalists committed to delivering the latest and most relevant news from the world of technology to readers of The Times of India. TOI Tech Desk's news coverage spans a wide spectrum across gadget launches, gadget reviews, trends, in-depth analysis, exclusive reports and breaking stories that impact technology and the digital universe. Be it how-tos or the latest happenings in AI, cybersecurity, personal gadgets, platforms like WhatsApp, Instagram, Facebook and more; TOI Tech Desk brings the news with accuracy and authenticity.
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The European Union is expected to issue an antitrust order to Google's advertising technology business, but a break-up of the company is not anticipated in the immediate future. The decision, set to be announced in 2024, aims to address competition concerns in the digital advertising market.
EU's Antitrust Action Against Google's AdTech Business
The European Union is poised to take significant antitrust action against Google's advertising technology business, according to sources familiar with the matter. The European Commission, the EU's executive body, is expected to issue an order addressing competition concerns in the digital advertising market. However, contrary to some speculations, a break-up of Google's business is not anticipated in the immediate future
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.Timeline and Scope of the Decision
The EU's decision is slated to be announced in 2024, marking a crucial development in the ongoing scrutiny of big tech companies. The order is expected to focus on Google's dominant position in the online advertising ecosystem, which has been a subject of concern for regulators and competitors alike. While the exact details of the order remain confidential, it is likely to impose certain restrictions or requirements on Google's AdTech operations
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.Potential Implications for Google
Although a break-up is not on the immediate horizon, the EU's order could still have significant implications for Google's business model. The company may be required to make changes to its advertising practices, potentially affecting how it collects and uses data for targeted advertising. This could impact Google's revenue streams and market position in the European digital advertising landscape
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.Broader Context of Tech Regulation
This anticipated action against Google is part of a larger trend of increased regulatory scrutiny on major technology companies in the EU. The bloc has been at the forefront of efforts to curb the power of big tech firms and ensure fair competition in digital markets. The decision on Google's AdTech business could set a precedent for future regulatory actions in the tech sector, both within the EU and potentially influencing approaches in other jurisdictions
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Industry Reactions and Expectations
The news of the impending EU order has sparked discussions within the tech industry and among competition experts. While some stakeholders may welcome the regulatory intervention, others might express concerns about potential impacts on innovation and market dynamics. Google, for its part, is likely to closely analyze the order and may consider various strategies to comply with the new requirements while maintaining its competitive edge in the digital advertising market
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.Future Outlook
As the EU prepares to unveil its decision in 2024, the tech industry and regulators worldwide will be watching closely. The outcome of this case could shape the future of digital advertising and potentially influence regulatory approaches to big tech companies in other regions. While a break-up may not be imminent, the EU's action against Google's AdTech business represents a significant step in the ongoing efforts to ensure fair competition and protect consumer interests in the digital economy
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