Google holds a dominant position in the online advertising market, which has repeatedly raised concerns and triggered controversies for the company.
Now the European Union (EU) is raising apprehensions regarding potential antitrust violations by the search engine giant and calling for a possible breakup of its ad business, which could force Google to lose 80% of its ad business.
In a comprehensive statement, the EU has communicated its “preliminary view” to Google, expressing its belief that the company has violated antitrust regulations pertaining to the advertising industry.
The EU’s concerns stem from the observation that Google has exhibited a bias toward promoting its own ads within its products, which ultimately undermines fair competition in the market.
The EU highlights its concerns by examining Google’s approach to its AdX ad exchange, providing evidence of the alleged behavior. The process involves the DFP facilitating ad selection through AdX, while Google Ads and DV360 provide purchasing tools for advertisers who also utilize AdX.
While this may appear straightforward, the consequence is that other ad exchanges are left with no share of the market, further reinforcing Google’s dominant position.
In its statement, the EU emphasizes that a mere “behavioral remedy” will not suffice in addressing the issue. Instead, it asserts that Google must divest and dismantle its ad business, allowing for competition from external advertising products separate from the company itself.
This proposed action aims to promote a more level playing field and reduce Google’s overwhelming influence in the market.
Although this preliminary view does not necessarily indicate imminent peril for the company, it is crucial to acknowledge that Google should indeed take this matter seriously. This is not the first instance in which the company has faced scrutiny regarding its dominant position, and it warrants attention.
If this preliminary view eventually translates into a ruling, the subsequent developments and the potential for finding a mutually agreeable middle ground between Google and the EU will be of great significance.
The outcome will determine the extent of satisfaction for both parties involved and shed light on the feasibility of reaching a compromise that addresses the concerns raised by the EU.
Source: Pro Pakistani