Google Proposes Adtech Policy Changes to Address EU Antitrust Concerns

Google Proposes Adtech Policy Changes to Address EU Antitrust Concerns

Google Proposes Adtech Policy Changes to Address EU Antitrust Concerns

Alphabet's Google has submitted a proposal to the European Commission to modify its online advertising technology (adtech) practices, aiming to resolve antitrust issues without divesting any assets. This follows a 2.95 billion euro ($3.4 billion) fine in September for favoring its own services, particularly its ad exchange AdX, which disadvantaged competitors, advertisers, and publishers. The proposal includes immediate product adjustments, such as enabling publishers to set varying minimum prices for bidders in Google Ad Manager and enhancing tool interoperability for greater flexibility. Google argues these changes fully comply with the Commission's ruling while avoiding a "disruptive break-up" that could negatively impact European publishers and advertisers reliant on its ecosystem. The EU had suggested potential divestment, and the case parallels a U.S. Department of Justice investigation seeking to force the sale of AdX, which Google views as unfeasible. Sources indicate the EU could still pursue a breakup order if anti-competitive behavior continues, similar to past actions against Microsoft.

Most Important Message

Google's offer focuses on policy tweaks rather than asset sales to settle EU adtech antitrust charges, asserting that this approach resolves conflicts of interest without harming the industry, amid ongoing scrutiny in both the EU and U.S.

History of Google's EU Adtech Antitrust Issue

Google's antitrust challenges in the European Union regarding its advertising technology (adtech) practices stem from allegations of abusing its dominant market position in the digital advertising ecosystem. The case focuses on Google's vertical integration across the adtech supply chain, including tools for publishers (like DoubleClick for Publishers), ad exchanges (AdX), and ad-buying platforms. Critics, including competitors, advertisers, and publishers, argue that Google has favored its own services since at least 2014, allowing it to charge higher fees, limit interoperability, and disadvantage rivals. This behavior is seen as reinforcing Google's central role, potentially harming competition and innovation in online display advertising. The investigation parallels similar scrutiny in the U.S. and builds on Google's prior EU antitrust fines for unrelated issues (e.g., shopping search in 2017, Android in 2018, and AdSense in 2019), highlighting a pattern of regulatory pressure on Big Tech's market dominance. Unlike earlier cases emphasizing fines as deterrents, the current EU approach under antitrust chief Teresa Ribera prioritizes behavioral remedies over structural breakups, though divestment was initially considered.

Timeline of Key Events

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