Former EU Leaders Demand Breakup of Google’s Ad-Tech Monopoly

A group of former European heads of state have signed a letter calling for the breakup of Google’s ad-tech business to ensure a fair and open digital economy.

A group of 18 former European leaders has called on the European Commission to dismantle Google’s advertising technology operations, citing growing concerns about its impact on competition, independent journalism, and European sovereignty.

In a letter addressed to Commission President Ursula von der Leyen, the leaders argue that the only effective way to address Google’s dominance is through structural separation.

The document, signed by members of Club de Madrid, a forum of former heads of state and government, follows the European Commission’s 2023 statement of objections, which outlined allegations of anti-competitive behavior by Google in the ad-tech sector.

Related: Trump Says Google Too Powerful, But Might Not Break Up the Company

The letter to European Commission President Ursula von der Leyen was signed by an array of distinguished former leaders, including Esko Aho, former Prime Minister of Finland; Dominique de Villepin, former Prime Minister of France; Dalia Grybauskaitė, former President of Lithuania; and Stefan Löfven, former Prime Minister of Sweden.

Representing diverse regions of Europe, these leaders, all members of the Club de Madrid, emphasized the collective concern over Google’s ad-tech monopoly and its impact on competition and democratic integrity across the continent.

With the Commission’s final decision expected soon, these calls for decisive action have placed additional pressure on EU regulators.

How Google Achieved Dominance in Digital Advertising

Central to the EU’s scrutiny is Google’s acquisition of DoubleClick in 2007, which allowed the company to integrate advertising tools, publisher platforms, and ad exchanges under one system. This vertical integration positioned Google as a gatekeeper for both advertisers and publishers, effectively controlling every stage of the digital advertising supply chain.

A former Google executive described this situation as “Goldman Sachs or Citibank owning the New York Stock Exchange,” highlighting the extent to which Google’s dominance consolidates power and suppresses competition. Regulators and critics argue that this control has created a dependency on Google’s ecosystem, leaving few viable alternatives for advertisers or publishers.

Related: US Federal Court Finds Google Guilty of Monopolistic Search Practices

Impact on Media Revenue and Democracy

The Club de Madrid’s letter draws attention to the broader societal implications of Google’s ad-tech monopoly, particularly its impact on independent journalism.

The authors warn that Google’s practices have siphoned advertising revenues away from smaller publishers, contributing to the rise of “news deserts” where communities lack access to independent reporting. This decline in local journalism, they argue, undermines democratic accountability and creates fertile ground for misinformation.

The letter emphasizes that “ad-tech serves as the economic engine of the open web,” adding that Google’s unchecked control weakens Europe’s media sector and its democratic institutions.

Former Slovenian President Danilo Türk, who now serves as president of Club de Madrid, remarked, “Europe’s sovereignty and security are under great pressure. The EU’s pioneering tech regulations set a global benchmark, but true digital independence requires more than regulation alone. Pursuing structural separation in the Google case would send a strong signal that Europe is committed to fair and open digital markets, safeguarding democracy from the escalating threats of unchecked power and foreign influence.”

Parallel Developments in the United States

The European Commission’s investigation into Google’s ad-tech dominance mirrors similar efforts in the United States. The US Department of Justice (DOJ) has accused Google of engaging in monopolistic practices, including bundling its Chrome browser and Android operating system with its search and ad services.

Prosecutors have proposed remedies such as mandating the divestiture of Google’s advertising technology operations and increasing data-sharing requirements to level the playing field.

Exclusive agreements between Google and Apple, which make Google the default search engine on Apple devices, are also under scrutiny. These contracts, valued at approximately $20 billion annually, have been described by U.S. regulators as barriers to fair competition.

Alphabet CEO Sundar Pichai and Microsoft CEO Satya Nadella have both given testimonies during the landmark trial. In his testimonies to the court, Microsoft CEO Satya Nadella suggested Google stifles Bing. Nadella revealed that Microsoft has poured a staggering $100 billion into Bing, its proprietary search engine. Nadella candidly admitted Microsoft’s unsuccessful attempts to dethrone Google from this position, even after offering Apple more favorable terms.

The DOJ highlighted the global implications of Google’s market power, as regulators on both sides of the Atlantic consider measures to restore competition in the ad-tech sector.

Google’s Stance and Ongoing Debates

Google has consistently defended its practices, arguing that its ad-tech systems benefit publishers and advertisers by improving efficiency and performance. In a statement, a Google spokesperson stated to the Wall Street Journal, “As we have said before, while we disagree with the European Commission’s view, we have been engaging constructively,” a Google spokesperson said, adding, “the company is committed to creating value for publishers and advertisers.”

Despite these assurances, critics argue that Google’s market dominance leaves little room for competition. Margrethe Vestager, the former EU competition chief, described Google’s influence in the digital advertising sector as “pervasive” and suggested that divestiture might be necessary to address the company’s anti-competitive behavior.

Concerns about security and privacy have also been raised. Former Google CEO Eric Schmidt previously criticized proposals to break up the company, warning that such measures could harm consumers by fragmenting integrated systems.

“Chrome is by far the safest and most secure browser to use, and so if it’s unbundled in some way, customers will just re-bundle it,” Schmidt stated in an interview, cautioning that forced divestitures could weaken product quality.

Recommendations for European Innovation and Sovereignty

In addition to advocating for Google’s structural breakup, the Club de Madrid’s letter calls for broader investments in European technology infrastructure. The authors propose a “European Tech Deal” to reduce dependence on foreign platforms and support innovation within the region.

They recommend leveraging public procurement, funding startup ecosystems, and strengthening enforcement of the EU’s Digital Markets Act and Digital Services Act.

These measures, the letter argues, are essential for promoting competition, protecting democratic values, and ensuring that Europe retains control over its digital economy. The anticipated decisions by the European Commission and the DOJ are expected to set a global precedent for regulating Big Tech’s influence in critical markets.

Markus Kasanmascheff
Markus Kasanmascheff
Markus has been covering the tech industry for more than 15 years. He is holding a Master´s degree in International Economics and is the founder and managing editor of Winbuzzer.com.

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