CNBC reported that on Wednesday, the European Union accused Google of violating antitrust rules in the advertising technology sector and may take steps to spin off part of the tech giant's business to ease the EU's concerns.
The European Commission has reached preliminary conclusions that Google dominates the European publisher ad server market and the open web-oriented programmatic ad buying tool market.
The commission also said that Google had abused this dominant position since at least 2014.
Google's parent company, Alphabet, now has the opportunity to gain insight into the European Commission's concerns and state its position in writing, while calling for an oral hearing to express their views.
The European Commission has reached a preliminary conclusion alleging that Google dominates both the European publisher ad server market and the open web's programmatic ad buying tool market.
The European Commission says Google has abused this dominance since at least 2014.
Google's parent company, Alphabet, will have the opportunity to learn more about the concerns raised by the European Commission and present their views in writing, while Google asks for an oral hearing to express their views.
The European Commission has suggested that Google may need to spin off the business in order to address the concerns raised by the EU and comply with the EU's competition rules.
Margaret Vestager, the EU's head of competition, said in a statement: "The European Commission therefore preliminarily believes that the concerns raised by Google in competition can only be addressed by forcing Google to divest some of its services." ”
This will be the first time that the European Commission has requested the spin-off of part of a business.
"Google plays a role at all levels of the ad tech chain, from collecting user data, ad placement, to acting as an ad mediator," Vestager said. As a result, Google is involved in almost every link of the ad tech chain. ”
The European Commission has suggested that Google may need to spin off its business in order to address the concerns raised by the EU and comply with the EU's competition rules.
Margaret Vestager, the EU's head of competition, said in a statement: "Therefore, the Commission's initial view is that the concerns raised by its market competition can only be addressed by forcing Google to divest some of its services." ”
This will be the first time that the European Commission has requested the separation of part of a business.
Vestager said at a press conference that there is a conflict of interest for inheritance, and that "Google exists at every link in this chain".
We are obliged to find remedies that are less intrusive," Vestager added. "We don't believe that this inherent, intrinsic conflict of interest can be resolved by not having ownership of the entire value chain. ”
Our initial concern is that Google may use its market position to support its own intermediary services. This can not only hurt Google's competitors, but it can also hurt publishers, while also increasing costs for advertisers. If proven to be true, Google's practices would be illegal under our competition rules. ”
Vestager said at a news conference on Wednesday that there was a conflict of interest in succession. "Google is present at every link in this ** chain. ”
It is our responsibility to find the smallest remedy," Vestager added. "We believe that this inherent and intrinsic conflict of interest cannot be resolved by not taking ownership of the entire value chain. ”