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The European Commission accuses Google of monopolistic practices

  • June 14, 2023
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European Commission (EC) formally blamed this environment on the technological multinational Google abuse of their dominant position by favoring their technological services advertising or “advertising technology” which are

The European Commission accuses Google of monopolistic practices

European Commission (EC) formally blamed this environment on the technological multinational Google abuse of their dominant position by favoring their technological services advertising or “advertising technology” which are tools and programs used by advertisers to reach a wider audience and measure the impact of their campaigns.

The Community Executive Committee announced an investigation in this regard in June 2021 and filed an indictment against the US company today accusing it of “facilitating the online showcase of its own advertising technology services to the detriment of competing vendors.”

Brussels He also considered it “unlikely” that a change in Google’s behavior in the sector could eliminate Community competition violations, as the company is active in all segments of the sector, and he pointed out as the only solution selling part of your business.

This is Brussels’ fourth case against Google after allegations of dominance through the system. android, your price comparison service Google Shopping and your platform Adsense for the search, resulting in fines totaling around 8,000 million euros.

On the new issue, the European Commission stressed that online advertising is Google’s “main source of income”, either by directly selling space on its web pages or apps, or by intermediating between advertisers and website owners. offer advertising space.

In particular, a multinational corporation offers services in this sector with two purchasing tools for advertisers (Google Ads and DV360), another for publishers to manage their ad spaces (DoubleClick for Publishers or DFP) and a platform that connects both parts of the business, Ad Exchange.

Therefore, the Community Leader concluded that Google maintains a dominant position in these ad technology markets in the European Economic Area (EEA) through Google Ads, DV 360 and DFP.

“There is nothing wrong with dominating itself, but our research shows, however, that Google appears to be abusing its market position by ensuring that its brokerage tools favor AdX,” the AdX VP explained to the press. -conferences. The European Commission, responsible for competition and the digital agenda, Margret Vestager.

Brussels suspects, in particular, that Google deliberately favored its AdX platform in advertising auctions organized by DFP, informing it, for example, of the value of the highest bid that a competitor had made and had to beat in order to win a contract. .

AdX also enjoyed a competitive advantage, according to community authorities’ preliminary findings, in Google Ads and DV 360 buying tools: the former mainly offered offers made on the Google platform, resulting in AdX being the “most attractive” option.

In addition, the European Commission believes that changing this behavior is “likely to be ineffective” and prevent Google from continuing to favor its own tools, since the multinational is active in both parts of the market and its services dominate both.

Therefore, the community leader’s tentative opinion is that the only way for Google to drop the charge of abuse of dominance is to sell “part of its services.”

Although the European Commission emphasized that the submission of a statement of objection does not prejudge the final outcome of the investigation, it also recalled that it could impose penalty up to 10% of its global annual income to Google if it proves wrong and the multinational persists in its conduct.

(EFE)

Source: Aristegui Noticias

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