Given the dominance of Google in the ad business, the EU has been tough on the company. In an effort to maintain balance, the EU suggested that the company divest parts of its ad business. According to some recent pieces of information shared by Bloomberg, in a letter to EU regulators, Google rejected the EU’s demands that the internet giant restructure its ad business. Google is attempting to fight the EU’s efforts.
All such debates begin with the allegation imposed by the EU that suggests that Google is misusing its dominant position. It is using its market power to outcompete rival businesses. The complaint further emphasized Google’s impact on both the purchase and sell sides of the value chain and claimed that there was no other way to resolve the conflict of interest.
Even though the early pieces of evidence were inconclusive, the corporation might still be found guilty and face fines of up to 10% of its worldwide sales as well as potential operational changes.
Response by Google
The Vice President of Global Ads at Google, Dan Taylor, addressed the European Commission’s (EC) objections in a blog post. He highlighted the competitive nature of the digital advertising market and remarked that the ad tech tools used by Google are essential for upholding an open and accessible internet. Furthermore, he wrote that avoiding such tools will restrict the availability of free, ad-supported content that is helpful for users, ad businesses, and publishers.
In this very competitive market, Google is still dedicated to adding value for both publisher and advertiser partners. We reject the EC’s position and will respond accordingly,” Taylor added. One thing to remember here is that this is not the very first time we have heard about a conflict between Google and the EU. In the past, Google was fined €8.3 billion ($8.8 billion) by the European Commission given its dominance in the mobile OS and display ad operations markets.
Brian is the news author at Research Snipers which mainly covers Technology News, Microsoft News, Google News, Facebook, Apple, Huawei, Xiaomi, and other tech news.