- Google’s ad tech practices have been under investigation by the EU since 2021, examining whether the company may have obstructed rivals’ access to user data for online advertising and ringfenced data for its own use.
- The EU is considering tough remedies, including a possible breakup of the company, to prevent the most powerful firms from turning markets into competition dead-zones.
- Litigation against Google’s behavior is ongoing in the US as part of three different suits, which could result in an order for Google to separate its ad tech arm from its core business.
In a major move, the European Union (EU) has threatened to break up Google’s ad tech dominance. The EU’s antitrust agency has said that Google’s dominant position in the online advertising world is detrimental to competition, and that it is therefore considering a range of options. This could include forcing Google to divest some of its advertising technology and data businesses.
The EU’s announcement comes after a long investigation into Google’s practices in the ad tech industry. The investigation has found that Google has been using its dominance in the market to stifle competition and maintain its position. This has led to higher costs for advertisers, less choice for publishers, and a lack of innovation in the industry.
In response to the news, Google has said that it disagrees with the EU’s allegations and that it will continue to defend its practices. However, the threat of a breakup could be a significant blow to Google’s business. Ad tech is a key part of Google’s revenue stream, and a forced divestment could significantly impact its profits.
The EU has been known for its strict stance on antitrust issues, and this move signals that it will not back down in its efforts to ensure fair competition in the tech industry. It remains to be seen how Google will respond to the EU’s threat, but it seems likely that this issue will continue to be a major focus in the tech world for some time to come.