Brussels makes fresh allegations against Google over ad tech

Brussels has hit Google with new charges over the tech giant’s alleged distortion of competition in the advertising technology sector and could force it to sell part of its online advertising business.

Google favors its own ad tech services at the expense of rivals, hurting the businesses of online advertisers and publishers, the European Commission said.

The commission will address “only the mandatory divestment by Google of part of its services,” the commission said in formal but preliminary findings on Wednesday.

“It is quite rare that we call for a divestment and we may do so if we find that Google has abused its dominant position,” said Margrethe Vestager, EU executive vice-president in charge of competition policy.

“Google is active on both sides of the market with its publisher ad servers and its ad buying tools,” the commission said, adding that it “holds a dominant position at both ends”.

The commission said it was “concerned that Google’s alleged deliberate conduct of (its own ad exchanges) was aimed at giving it a competitive advantage and may have shut down rival ad exchanges”.

The probe dates back to June 2021 when the commission said it was concerned Google was making it harder for rivals to compete in the online advertising market.

It would be the first time the European Commission has ordered a tech giant to break up part of its business after years of antitrust enforcement where Google has been fined billions in several competition cases.

Specifically, the commission noted that, since at least 2014, Google had favored placing bids with its own ad exchange, AdX, during the auction process. By giving AdX a “competitive advantage”, the commission alleged that Google strengthened the exchange’s role in the ad tech supply chain, in return allowing the Silicon Valley conglomerate to charge higher prices for the service.

The move comes as Google faces increasing scrutiny over its approach to the booming “ad tech” space. In January, the US Department of Justice announced it was suing Google over similar allegations that it had launched a “systematic campaign” by attempting to seize control of high-tech equipment, albeit “widespread”. To monopolize the digital advertising technology market. conflicts of interest”.

Dan Taylor, vice president of global ads at Google, said: “Our ad technology tools help websites and apps fund their content, and enable businesses of all sizes to effectively reach new customers.

“Google is committed to creating value for our publisher and advertiser partners in this highly competitive sector. The Commission’s investigation focused on a narrow aspect of our advertising business and is nothing new. We disagree with the EC’s approach And we will respond accordingly.