EU Says It May Seek Breakup of Google's Ad-Tech Business -- WSJ
June 14 2023 - 6:20AM
Dow Jones News
By Kim Mackrael and Sam Schechner
BRUSSELS--Europe's top antitrust regulator said it may seek the
breakup of Google's ad-tech business as it charged the tech giant
with abusing its dominance of the online advertising technology
industry.
The move Wednesday means Europe is joining the U.S.'s antitrust
assault on Google's ad-tech business, potentially setting up a
protected battle that could shake up the broader business of buying
and selling ads across websites and apps.
The European Commission, the European Union's antitrust
regulator, said that Google abused its dominant role in the buying
and selling of online ads across third-party websites and apps to
drive business to its own advertising auction house.
The commission said Wednesday that its preliminary view is that
Google must sell off parts of its ad-tech business to resolve the
"inherent conflicts of interest" in the company's role in the
plumbing of digital advertising. The commission didn't immediately
say which parts of its business Google might have to sell. But it
said Google operates the dominant ad server used by website
publishers, and the dominant buying tools for marketers to buy ads
on the open web.
The Wall Street Journal reported earlier this week that the
commission was considering ordering a breakup of Google's ad-tech
business.
Google will have a chance to respond to the commission's formal
complaint before any final judgment is issued. If found guilty, the
company could also face a fine of up to 10% of its annual worldwide
revenue--though it can appeal a decision in EU court.
The EU's decision to mention a potential remedy, particularly a
potential divestiture, is an unusual step at this stage of an
antitrust case. In most cases, the EU typically waits until it has
found a company guilty before discussing potential remedies, and in
abuse of dominance cases those remedies usually are orders to
change behavior, not divestitures.
Google has previously contested allegations that its presence at
different points in the online ad-buying process gives it an unfair
advantage. The company has also said it doesn't plan to sell or
exit the ad-tech business.
Write to Kim Mackrael at Kim.mackrael@wsj.com and Sam Schechner
at sam.schechner@wsj.com
(END) Dow Jones Newswires
June 14, 2023 07:05 ET (11:05 GMT)
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