Google’s online advertising practices violate antitrust laws, EU says
Google on Wednesday charged violating the European Union’s antitrust laws by using its dominance in online advertising to undermine rivals, the latest in a series of cases around the world that go to the heart of the internet giant’s business model.
The case, brought by the European Commission, the executive branch of the 27-country European Union, marks the fourth time Google has been accused of violating European antitrust laws in recent years. In this case, the EU accused Google of abusing it control the market for buying and selling online advertising.
The European Union’s announcement follows similar charges brought against Google in January by the US Justice Department, which accused the company of illegally abusing a monopoly over the technology that powers online advertising. Britain’s Antitrust Authority has been, too investigation of Google’s advertising practices.
The outcomes of the cases could have significant implications for Google’s parent company, Alphabet, which reaped the most $60 billion profit last year from advertisements. Ads support nearly all of Google’s popular services, including search, email, maps, and Android, and allow the company to offer them for free.
“Google is present at almost all levels of the so-called adtech supply chain,” Margrethe Vestager, the European Commission’s executive vice president overseeing digital and competition policy, said in a statement. “Our first concern is that Google has used its market position to favor its own brokerage services.”
“This may have hurt not only Google’s competitors, but publishers’ interests, while increasing costs for advertisers,” she added.
The new charges against Google are part of a long-running effort by European authorities to crack down on the world’s largest technology companies. Apple and Meta, which own Facebook and Instagram, are also the subject of antitrust investigations. Last year, the European Union passed new antitrust and digital services laws to tighten scrutiny of the biggest tech companies. And on Wednesday, the European Parliament, a legislative branch of the EU, passed a bill regulating artificial intelligence.
In recent years, European authorities have fined Google billions of dollars for what they say are antitrust violations related to its Android mobile operating system, its shopping service, and some other part of its advertising business. All cases remain tied up in court after legal appeals by Google.
With the new charges, the European Commission unveiled what’s known as a “statement of objections” to Google, outlining why it believes the company has breached antitrust laws. It’s one step in what could be a lengthy process before final decisions are made about imposing a fine of up to 10 percent of Google’s global revenue or ordering other changes to its business practices. A settlement could also be reached.
European regulators began an investigation into Google two years ago, focusing on the display advertising market, which includes banners and other visual formats on websites. Google offers a number of services to advertisers and publishers in this industry. It collects data to target advertising, sell advertising space on websites, and offer products that serve as an intermediary between advertisers and publishers who own websites.
Ms Vestager has said that by controlling such a large part of the online advertising supply chain, Google is making it harder for rivals to compete. Publishers like News Corp. have long complained that Google’s dominance limits the amount of money they can generate from advertising on their websites or for competing services to emerge.