In a move to address European Union antitrust concerns, Google has put forward a plan to divest its AdX advertising platform. Yet, according to insiders, European publishers have not been persuaded by this offer.
Examining the Antitrust Inquiry
An antitrust examination started after the European Publishers Council lodged a complaint about Google's powerful position in advertising tech. From the investigation, the European Commission to investigate potential biases in Google's advertising market practices.
Google's attempt to remedy these concerns by selling AdX has not satisfied European publishers, who are pushing for a wider divestment to eliminate perceived conflicts involving Google's ad tech empire.
Global and Legal Context
This is the fourth antitrust case the European Commission has taken up against Google, focusing on allegedly preferential treatment of its own ad services. In the U.S., Google concurrently contends with calls to divest the entire Ad Manager suite, including AdX and DFP, from its operations.
Globally, questions persist about Google's control over the digital advertising market. Concerns about its dominance span beyond the EU, with the UK's competition regulatory body scrutinizing Google's potential monopoly.
Google's Ongoing Issues in Europe
Google has been a regular target of European antitrust authorities. In 2022 Google was fined $5 billion by regulators in Europe. The Commission says the fine regards three restrictions Google placed on Android device OEMs. Under European laws the restrictions break antitrust regulations. Google also failed this month ot overturn another multi-billion-Euro fine.
The European Union Court of Justice affirmed a €2.4 billion ($2.6 billion) penalty on Google, marking a setback for the tech giant. The ruling stems from a 2017 decision where the European Commission accused Google of market dominance abuse to undermine rival shopping services.
In February this year, More than 30 European media organizations have initiated legal proceedings against Google, seeking €2.1 billion in damages for revenue losses attributed to the tech giant's alleged anticompetitive adtech operations. However, in September 2024, Google had a rare win against European regulators by successfully having a multi-billion-Euro fine overturned.
