Fears of antitrust violations by the search engine giant have prompted the European Union (EU) to call for a possible separation of its ad sector, which could result in Google losing as much as 80% of its ad revenue. Google’s dominant position in the online advertising sector has been a source of recurring criticism and controversy.
The European Union (EU) has sent a lengthy statement to Google, conveying its “preliminary view” that the corporation has broken antitrust restrictions pertaining to the advertising business.
The European Union is concerned because it has seen evidence of Google’s bias towards boosting its own adverts within its goods, which harms consumers and the market as a whole.
By analysing Google’s approach to its AdX ad exchange, the EU stresses its concerns and provides evidence of the alleged behaviour. The DFP acts as an intermediary between AdX and advertisers, simplifying ad selection, while Google Ads and DV360 serve as purchasing tools for marketers who employ AdX.
While this may seem simple, it actually ensures that Google’s dominant position in the ad exchange market is only strengthened.
European Union is trying to break monoply
In its statement, the EU stresses the importance of going beyond a “behavioural remedy” to solve the problem. Instead, it argues that Google should sell up and disassemble its advertising business to level the playing field for rival ad tech companies. The suggested step is intended to make the playing field more fair and lessen Google’s monopoly power.
This initial assessment may not portend immediate danger for Google, but the corporation would be well to treat the situation carefully nonetheless. The company’s dominant position has been called into question before, so this latest occurrence is not without significance.
The significance of what happens next and the likelihood of Google and the EU coming to an amicable middle ground if this preliminary view becomes a ruling cannot be overstated.
The outcome will reveal how happy each side is and whether or not it is possible to find a middle ground that appeases the EU’s worries.
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