Google has announced that it will implement changes to its advertising system globally in order not to abuse its dominant position in the market . The internet giant's decision is part of a landmark agreement with the French Competition Authority. Even so, the Mountain View company will have to pay a fine of 220 million euros for monopolistic practices in the industry.
The sanction by the French authorities could mark a before and after in the way in which publishers of web pages and applications for mobile devices receive benefits from online advertising. Precisely, the investigation prior to the fine revealed that Google gave preferential treatment to its ad technologies, leaving its competitors at a disadvantage .
“The decision to sanction Google is of particular importance because it is the first in the world to focus on the complex algorithmic auction processes on which the online advertising business is based,” said Isabelle de Silva, France's antitrust chief. He also added that these practices served for the company to maintain and increase its dominant position.
Google had privileged information to win the ad auctions
Photo by Christian Wiediger on Unsplash According to the investigation, Google gave preferential treatment to its DFP ad server, which allows publishers to manage, sell and optimize ad space on their web pages and mobile applications. It also benefited its AdX platform, which organizes auction processes and allows publishers to sell spaces to advertisers.
Ad Manager provided AdX with important data, such as the tender prices offered by the competition . With this information, Google could adjust the auction price to increase them. Consequently, it reduced the attractiveness of third-party ad servers.
This outcome has its origins in a complaint filed in 2019 by three companies in the news sector. They are News Corp., owned by The Wall Street Journal, The Sun and other media, the French newspaper Le Figaro and the Belgian group Rossel.
The French Competition Authority has ensured that Google will not appeal the decision. He has also indicated that he will mark a path for publishers who feel at a disadvantage to claim damages. The Internet giant, for its part, ensures that the first changes will begin to be applied in the first quarter of 2022.
