According to a source with direct knowledge of the matter, European Union (EU) antitrust regulators may require Google to sell part of its ad-tech business. The EU’s main antitrust watchdog, the European Commission, could issue a formal complaint against Google on Wednesday, further intensifying efforts to lessen the tech giant’s dominance in digital ads.
The investigation into Google’s extensive presence at almost every level of the online display advertising supply chain began in 2022 and raised concerns about its dominant position. Break orders from the EU competition authority are rare. However, frustration has been mounting after Google failed to address competition concerns, It is understood that.
Google is currently the world’s most dominant digital advertising platform with a 28% market share of global ad revenue, according to research firm Insider Intelligence. Despite first-quarter ad sales at Alphabet falling from a year earlier to $54.55 billion, they beat analysts’ expectations. Total revenue for Google’s parent company for the period was $69.79 billion.
Google’s dominance in online advertising has been increasingly called into question in recent years. Complaints from rivals about their alleged anti-competitive practices have led to antitrust investigations on several continents regarding their practices.
Earlier this year, the United States filed an ad tech lawsuit against Google demanding that it sells its ad management package and argued that the search giant illegally abused its domain of online advertising. However, Google denied any wrongdoing.
The Wall Street Journal first reported on Monday that there could be a likely EU move concerning this matter.
The understanding, while break orders from EU competition authorities are rare occurrences, it seems that regulators may require Google to sell part of its ad-tech business due to mounting frustrations over failing to address competition concerns. Despite being one of the world’s most dominant digital advertising platforms with significant market share and revenue figures, complaints from rivals about alleged anti-competitive practices have led several continents to investigate their practices regarding online advertising dominance.