Google’s dominance in the online advertising sector has regularly aroused worries and sparked scandals for the company.
The European Union (EU) is now expressing concerns about alleged antitrust violations by Google and asking for a possible separation of its ad industry, which might force Google to lose 80% of its ad revenue.
The EU has expressed its “preliminary view” to Google in a thorough statement, expressing its belief that the corporation has broken antitrust restrictions relevant to the advertising business.
The EU is concerned because Google has shown a bias towards boosting its own adverts within its products, which ultimately hinders market competition.
The EU emphasises its worries by investigating Google’s approach to its AdX ad exchange and providing evidence of the alleged behaviour. The DFP facilitates ad selection via AdX, while Google Ads and DV360 provide purchasing capabilities for advertisers who also use AdX.
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While this may look uncomplicated, the result is that rival ad exchanges have no market share, maintaining Google’s monopoly position.
The EU emphasises in its statement that a simple “behavioural remedy” will not serve to address the problem. Instead, it claims that Google must divest and deconstruct its ad business, allowing external advertising solutions to compete with the corporation.
This proposed move attempts to establish a more equitable playing field and lessen Google’s market dominance.
Although this first assessment does not necessarily suggest imminent danger to the corporation, it is critical to recognise that Google should treat this situation seriously. This is not the first time the firm has been called out for its dominant position, and it deserves to be addressed.
