Google may be required to sell part of its ad-tech business to address concerns about anti-competitive practices, according to European regulators. The EU's executive arm, the European Commission, has lodged a formal antitrust complaint against Google's ad business, citing alleged abuse of its dominant position in the digital advertising market. The European Commission claims that Google has unfairly favored its own ad exchange, AdX, through its popular ad tools for publishers and advertisers. - In preliminary findings, the commission suggests that selling off certain tools, such as Google's ad server that works with site publishers and its ad exchange, may be the only way to resolve the "conflicts of interest."
- While the EU has previously fined Google, this is the first time it has suggested breaking up a tech company to address antitrust violations.
- Margrethe Vestager, the EU's antitrust chief, said in a tweet that Google controls "both sides of the adtech market: sell & buy."
- If Google is abusing its dominance in favor of AdX, this if illegal, she said.
Response: - Google now has the opportunity to respond to the complaint, after which the commission will determine if antitrust laws were breached.
- If found guilty, the company could face fines of up to 10% of its global sales.
- In response, Google stressed the highly competitive nature of the digital advertising sector and said its ad-tech tools help fund content and help businesses reach new customers.
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