Google has proposed measures to the European Union (EU) aimed at avoiding a split in its online advertising activities, following a large fine imposed by Brussels in September for abuse of a dominant position, the American group announced on Friday, November 14.
In this file it says “Google Ad Technology”The tech giant has until this week to propose measures to definitively end the attack on competition, which has resulted in the company being hit with sanctions totaling 2.95 billion euros.
While continuing to oppose the EU decision, which they intend to appeal, Google has ruled out, as the group has always done to date, the most radical solution to restore conditions for fair competition: the sale of all or part of the activities in question, which would effectively result in a split within the group.
It now remains to be seen whether Brussels will accept Google’s detailed commitments. “We will analyze the steps proposed by Google, to check whether they can end it” against the practices it condemns and the conflicts of interest inherent in its activities, a Commission spokesperson said.
Deadline 60 days
Brussels in September voted to impose a fine of nearly 3 billion euros in sanctions against the group, noting it had abused its dominant position in online advertising, but stopped short of ordering an outright breakup. However, the Commission has not ruled out the need for such action if the group’s commitment to remedy competition violations is inconsistent, and has given Google 60 days to make a proposal.
Google is in the crosshairs of Brussels for its alleged actions in various segments of the online advertising sector. The group offers several services that act as intermediaries between advertisers and websites: AdX, a platform specialized in buying and selling advertising space, DFP (DoubleClick for Publisher), a service for sites and applications that broadcast advertising, and Google Ads/DV 360, a tool aimed at advertisers. However, the Commission assessed that DFP, Google Ads and DV 360 abused their dominant position, in particular by prioritizing AdX over their competing platforms.
“Our proposal fully responds to the Commission’s decision, without creating a disruptive split that would harm the thousands of advertisers and ad distributors who use Google tools to grow their businesses”assured a spokesperson for the American group. This involves change “quick” to end sanctioned practices, and “important steps” opposed the conflict of interest alleged by Brussels, the group explained.
New investigation
US President Donald Trump attacked the EU over the fine it imposed in September, which he described as a fine“unfair”however the group faces similar charges of abuse of a dominant position by the American government, in a trial currently underway in the United States.
In a hearing in late September before a federal court in Virginia, Google proposed changing its business practices, without going through a split that was deemed too radical. Final arguments are scheduled for Monday, and a decision in the American trial is expected in the coming weeks or months.
In another tumultuous antitrust case, this year the group escaped a breakup of its Chrome browser, which the American government had nonetheless requested. Additionally, the Commission opened a new investigation into Google on Thursday, in a completely different area, this time suspecting Google of penalizing certain information sites in its search engine results, but the group denies this.
