European Union (EU) antitrust regulators are reportedly considering imposing hefty fines on Google for anti-competitive practices in its adtech business. According to a report by news agency Reuters, “EU antitrust officials are considering ordering Alphabet’s Google to end anti-competitive practices in its adtech business, but will not order a breakup as they had previously warned.” The report quotes sources with direct knowledge of the matter.
Last year, EU antitrust chief Margrethe Vestager had warned that Google’s adtech business could face a breakup, a move that would have been unprecedented in antitrust cases.However, the complexity involved has led regulators to reconsider this option.
Google may face hefty fine, but escape ‘break-up’
While a breakup order is reported to remain a possibility in the future if Google continues its anti-competitive practices, the EU is likely to impose heavy fine instead. The decision could be announced in the coming months, following Vestager’s departure from office in November.
Vestager had suggested that Google could sell its sell-side tools DFP and its own ad exchange AdX because of the conflicts of interest as it also owns ad buying tools Google Ads and DV360, which places bids on ad exchanges. She claimed that the company had allegedly illegally favoured its own ad exchange AdX in matching auctions, abusing its dominance since the year 2014. Google has been fined up to 8.25 billion euros ($9.14 billion) in EU antitrust cases in the last decade.
Google has faced multiple antitrust investigations in recent years, accumulating billions of euros in fines. The company’s dominance in the digital advertising market has raised concerns among regulators.
The EU’s decision could have far-reaching implications for the advertising industry, as Google’s practices have significantly impacted competition.