Google‘s proposal to sell part of its advertising technology business has been rejected by European Union publishers, sources familiar with the matter told Reuters. The tech giant had offered to divest its advertising marketplace, AdX, in an unprecedented move to resolve an ongoing EU antitrust investigation.
Two individuals with direct knowledge of the situation told Reuters that European publishers deemed the offer insufficient, pushing for more extensive divestitures to address concerns about Google’s dominance in the ad tech industry.
The European Commission launched its fourth antitrust case against Google last year, following a complaint from the European Publishers Council. The case centres on allegations that Google favours its own advertising services, potentially stifling competition in the digital ad market.
According to Reuters, Google’s 2023 advertising revenue, which includes various services such as search, Gmail, and YouTube, amounted to $237.85 billion, representing 77% of the company’s total revenue.
EU antitrust chief Margrethe Vestager had previously suggested that Google divest its sell-side tools, including the Doubleclick for Publishers (DFP) ad server and AdX, to resolve conflicts of interest. However, sources indicate that the Commission is unlikely to mandate asset divestitures immediately.
Instead, the regulatory body may initially order Google to cease alleged anti-competitive practices in the coming months. A potential divestment order could follow if the company fails to comply with the initial decision.
A Google spokesperson defended the company’s position, stating, “The European Commission’s case about our third-party display advertising products rests on flawed interpretations of the ad-tech sector, which is fiercely competitive and rapidly evolving.”
Google is simultaneously fighting similar antitrust claims in the United States, where authorities are seeking to force the company to sell its Ad Manager product.