EU to Tackle Google’s Online Advertising Power Through Splitting

The European Commission (EC) has announced plans to tackle Google’s online advertising power, through splitting. This follows the US Department of Justice’s (DoJ) efforts to end the tech giant’s online advertising monopoly.
In a press statement, European Commissioner of Competition Margrethe Vestager declared that Google is in violation of EU regulations. This is because the tech giant allegedly favors its own online advertising services at the expense of competitors, advertisers and online publishers.
Google is accused of favoring its own ad exchange platforms by abusing access to information for rival ad space bids. The tech giant is also said to disadvantage other ad exchange platforms by placing ad bids on its own platforms.

Stricter Measure Due to Hard Teaching

The EC finds Google tough when it comes to the abuse of its various monopoly positions. The tech giant has already been fined three times for a total amount of more than 8 billion euros.
The EC is now proposing a tougher measure, forcing Google to split off its online advertising business. This would involve the divestment of Google Ads and DV360 from subsidiary DoubleClick, as well as advertising marketplace AdX.
Vestager has given Google the opportunity to respond to these allegations and take measures.

Cooperation with US

The EC is working closely with the US DoJ, as well as various competition authorities from various EU member states. This is in line with the US DoJ’s efforts to end Google’s online advertising monopoly.
In response, Google VP Dan Taylor argued that breaking up the online advertising technology could limit the availability of free and ad-supported content to everyone. He believes that the current online advertising market ensures better prices, innovation and robust competition, which would benefit everyone from advertisers and publishers to consumers.