Google faces new EU inquiries about advertising technology

European Union regulators GoogleTuesday’s business model reveals that Silicon Valley giants are being investigated by a new antitrust law for potentially exploiting their dominance in the online advertising market to curb competition. Announced.

This investigation was conducted by European authorities. World’s largest technology company.. Amazon, Apple And Facebook Is also subject to antitrust laws by blocks in 27 countries, and the European Union has introduced new antitrust and digital services laws. Further strengthen big tech surveillance..

Online advertising has helped Google become one of the most valuable and powerful companies in the world, with its parent company Alphabet making $ 40 billion in net profit last year. However, publishers such as News Corp and rival digital advertising companies have long complained that Google’s dominance has made it difficult for them to generate advertising revenue from their websites and give their competitors an edge. Is leaking.

The European Commission, the executive body of Brock, said the survey was focused on the display advertising market. The display advertising market is worth an estimated $ 24 billion in Europe, and Google offers many services to both advertisers and publishers. The company collects data for targeting ads, sells ad space on websites over the Internet, and provides a service that acts as an intermediary between advertisers and publishers.

“Google is concerned that rival online advertising services are making it difficult to compete in the so-called ad tech stack.” Marguerite Vestagar, The Executive Vice President of Competition Policy for the European Commission said in a statement.

“A fair competition is essential for everyone in the supply chain,” she said.

Announcing the start of a formal investigation is one step in a process that can be postponed over the years. Google can face fines of up to 10% of global revenue and demand changes in business practices if convicted.

When focusing on advertising, authorities are focusing on the cornerstone of Google’s financial success. Its advantages help the company build a digital empire in Internet search, email, entertainment, maps, cloud computing, smartphones and other consumer electronics, shopping, and autonomous driving. Google has a market value of over $ 1.6 trillion and is one of the largest companies in the world.

The Commission’s research focuses on how Google can harness its power in the advertising technology market to limit competition, including forcing advertisers to use certain Google services to buy display ads on YouTube. I’m guessing. Researchers also said they would consider a new Google policy for Chrome browsers aimed at replacing the tracking “cookies” placed on websites with a new system created by Google.

A Google spokeswoman said the company “continues to be constructively involved with the European Commission, answering their questions and demonstrating the benefits of our products.”

“Thousands of European companies are using our advertising products to reach new customers and fund their websites every day,” said a spokeswoman. “Choose them because they are competitive and effective.”

Agustín Reyna, director of the European Consumer Organization, said the study was a “significant move” by the European Commission. “Fair competition in this market is important to consumers as it can drive the emergence of alternative privacy-friendly advertising models,” he said.

This month, Google resolved a similar antitrust investigation. French authorities, The company has agreed to pay a fine of approximately $ 270 million, making it easier for rivals to use some of its advertising services.

In Germany, antitrust regulators recently published a survey of Google’s data processing practices. The company is also targeted by competition authorities in the United Kingdom, Australia, Turkey and Russia, among other jurisdictions.

In the United States Google is fighting a lawsuit in the Justice Department Blame the company for illegally protecting its online search and advertising advantage. Authorities said Google unfairly paid for transactions with companies like Apple to make Google the default search engine for the iPhone and hindered competition by using exclusive contracts and agreements with customers. Said. Parallel proceedings have been filed by the Attorney Generals of dozens of states.

Vestagger, who heads the European Commission’s digital policy, is a familiar enemy to Google. The company has recently been charged with violating the European Union’s antitrust law three times, resulting in billions of dollars in fines.

In 2017, authorities fined Google € 2.4 billion for improperly using its advantage as a search engine to enhance online. Shopping service More than a rival. A year later, the commission fined Google € 4.34 billion. Android mobile operating system Ask the manufacturer to install Google as the default search engine for smartphones.

And in 2019, Google was fined € 1.5 billion Imposing unfair conditions Companies that use the search bar on their website.

Google has appealed in all proceedings.

Google faces new EU inquiries about advertising technology

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