The European Commission has sent Google a statement of objections to possible abuse of its position in the display of online advertising.

According to the EU, Google is abusing its unique position in placing online advertising. The European Commission sent the American company a statement objecting to Google’s failure to respect competition law within the Union.

advertising concerns

There is often a dispute between Google and the European Commission. This time it is about the suspicion of distortion of competition. The Commission submitted the statement in response to an investigation that began two years ago. It was about Google’s advertising division, which provides tools for selling advertising space on websites.

Europe’s biggest concern is that the tech giant will abuse its position to favor its own services. According to EU top woman Margrethe Vestager, Google harms the competition as much as possible, but the company also disadvantages the websites on which the ads appear with its way of working. The costs for advertisers would also continue to rise. Vestager confirmed that if the results of the investigation are correct, Google’s practices would be illegal under European rules.

The four pillars

Google’s approach to serving ads is based on four cloud services. First, there is DFP, which allows websites to manage their ad space. For advertisers, the American company offers Google Ads and DV 360. Both make it easier to buy advertising space online. The fourth pillar is the AdX platform, a kind of online auction where advertisers can bid on advertising space.

AdX in particular is a thorn in the side of Europe’s digital eye. The European Commission sees the platform as an unfair advantage that Google has over its competitors due to its dominant position in the market.

Websites can use DFP to advertise their advertising space on AdX and similar services. The service with the highest bid wins. According to the EU, Google has collected data about its competitors’ proposals. Furthermore, the company would abuse Google Ads and DV360 by both systems mainly sending AdX suggestions to advertisers.

Possible Consequences

Normally, the EU requires companies that do not comply with competition law to change the way they operate; operate within these rules. But according to the European Commission, Google’s role in buying and selling ad space is too big to stop.

In the meantime, it was suggested that Google would divest that part of its business, but that’s just a suggestion for now.

Google itself, of course, refutes the Commission’s findings. In this case, the company can still offer legal resistance in various parts. Given the past, Google certainly won’t let that happen.

Earlier this year, the tech giant made headlines in a similar way, albeit specifically in Germany.