Alphabet/Google has promised to change the way its advertising services work in the EU to address antitrust concerns while not selling off part of its adtech business. The company insists it can resolve the conflict of interest through product changes, not a business spin-off.
Alphabet/Google has promised to change the way its advertising services work in the EU to address antitrust concerns while not selling off part of its adtech business. The company insists it can resolve the conflict of interest through product changes, not a business spin-off.
According to Reuters, Google’s offer was in response to a 2.95 billion euro fine and a demand from the European Commission to end the practice of its tools for advertisers and publishers giving priority to its own AdX ad exchange. The regulator believes that such a model harms competition in the digital advertising market and weakens the position of rivals.
Google said in a blog post that it is preparing «immediate product changes.» These include the ability for publishers to set different minimum bids for different buyers in Google Ad Manager and expanding compatibility with other ad buying platforms. The company also promises to increase interoperability across its stack to give advertisers and publishers more flexibility and choice.
The European Commission, however, reserves the right to return to the idea of a business breakup if Google continues to abuse its dominance. Its approach is based on the precedent of the Microsoft case, where the company was forced to change business practices under pressure from regulators. In parallel, a separate case is underway in the US, the Ministry of Justice, demanding the sale of AdX; the American court’s decision may also serve as a guideline for Brussels.
For Ukraine, this story is not purely «Eurobureaucracy.» Ukrainian media, marketplaces, and advertising agencies use the same Google stack as European publishers, and part of their audience lives in the EU. As it approaches EU membership, Ukraine will have to harmonize competition and digital market rules with European ones. So Google’s compromise with Brussels will also determine the working conditions of Ukrainian businesses that earn money from advertising.
Previously, dev.ua wrote about how Google sent Brussels a new plan for changes to its search results in order to close an antitrust investigation under the Digital Markets Act. Under this law, a fine can reach up to 10% of a company’s global revenue.
