Google finds itself again under investigation by the antitrust. The European Commission has announced the opening of a formal investigation in order to verify if there has been a violation of the competition rules . The suspicion is that they have favored their own online technology services over those of competing companies.
The use of advertising banners present on websites is under analysis. Not only that, particular attention will also be paid to the entire technological system that underlies it. “We are concerned that Google has made it harder for rival online advertising services to compete in the so-called ad technology stack. A level playing field is essential for everyone in the supply chain. ” said the executive vice president and head of competition policy, Margrethe Vestager .
The points of the antitrust investigation
In particular, the antitrust investigation will cover the following points:
- The obligation to use the services of Google Display & Video 360 (“DV360”) and / or Google Ads to buy online display ads on YouTube
- The obligation to use Google Ad Manager to serve online display ads on YouTube and potential restrictions imposed by Google on how competing Google Ad Manager services are able to offer online display ads on YouTube
- The apparent favor of the Google ad exchange “AdX” of DV360 and / or Google Ads and the potential favor of DV360 and / or Google Ads of AdX
- The restrictions imposed by Google on the capacity of third parties (advertisers, publishers or competing display advertising intermediaries) to access the identity or user behavior data available for Google's advertising intermediation services, including the ID Double click
- The next Google ban on placing third-party cookies on Chrome and replace them with the Privacy Sandbox toolset, including effects on display advertising and related brokerage markets
- Google's intention to stop make the advertising identifier available to third parties on smart Android mobile devices when a user forgoes personalized advertising and the effects on display advertising and related intermediation markets
Google's answer
“We will continue to engage in constructively with the European Commission to demonstrate the benefits of our products for European companies and consumers.” the Californian giant replied with a statement. “ Thousands of European companies use our advertising products to reach new customers and to finance their websites. They choose our products because they are competitive and effective. ” he added. Furthermore, the possible limitation of access to data of users to competing companies will also be evaluated. Google isn't the only one under the antitrust magnifying glass. It was the beginning of the month when the same accusations were also leveled against Facebook.
Timing of the antitrust investigation
The importance of this survey is also due to the large revenues related to online advertising. According to Reuters , this business brought Google revenues of $ 147 billion in 2020. This amount constitutes approximately 16% of its revenue. More and more companies are using Google to sell ads on their website and apps. Its technology allows interaction with hundreds of rival advertising platforms. An investigation of this caliber therefore involves an enormous amount of data and information. Furthermore, the complexity of the case will affect its duration. By law, there is no legal deadline for ending the investigation. Therefore, it may take a long time to arrive at a verdict.
Previous investigations
Bloomberg reports that this is the first time that the European Union has undertaken an investigation into Google's online display advertising, in which it acts as an intermediary between publishers and advertisers. Meanwhile, a similar investigation is underway in the United States. It was October last year when the Justice Department received multiple allegations against Google. Moved by local antitrust and various states, they concern the abuse of his domain in the context of search ads. According to eMarketer , Google would control about 27% of spending in the online advertising sector this year. While the figures do not represent a real monopoly, rival companies argue that the various Google software are so entrenched in the market that it is impossible to avoid them.
It is not the first time that Google's activities have been examined by the European antitrust. In the past, online purchase services , AdSense contracts and Android policies have been under investigation. Over the past decade, Google has been sanctioned by the EU for various violations. The fines imposed reach over 9.5 billion dollars (more than 8 billion euros).
