Google may have to sell its "golden goose"

The European Commission has just announced, two years after launching an investigation into Google's practices such as favoring its own search service. It could lead to a fine of up to 10% of global revenue. According to Reuters, the stakes are higher for Google this time because it involves its most powerful moneymaker. Its advertising division accounted for 79% of total revenue last year.

Specifically, Google's advertising revenue from search, Gmail, Gmail, Google Play, Google Maps, YouTube, Google Ad Manager, AdMob and AdSense in 2022 is 224.5 billion USD.

Google is in big trouble in Europe. (Photo: Reuters)

Google has several months to respond. It could also request a closed-door hearing with the commission’s top antitrust officials before the EU makes a final decision. Or it could settle by offering a stronger remedy than before.

Google may have to sell part of its adtech business because remedies are not effective in preventing anti-competitive practices, EU antitrust chief Margrethe Vestager said, citing potential options such as divesting its DFP and AdX tools.

However, Google disagrees with the committee's view. Google's Vice President of Global Advertising said that the investigation only focuses on a narrow aspect of the advertising department and there is nothing new.

The investigation will continue into the third-party cookie blocking tool on the Chrome browser, as well as plans to stop providing third-party ad identification tools on Android smartphones, Vestager said.

The Commission found that Google had been favoring its own online display advertising technology to the detriment of rival ad technology services, advertisers and publishers online. Google had abused its dominant position since 2014 by favoring the AdX ad exchange in ad auctions on its DFP ad server.

Google is the world’s leading digital advertising platform with a 28% market share by revenue, according to research firm Insider Intelligence. The company sought to settle the case three months after the investigation began, but regulators have grown increasingly frustrated with the slow pace and lack of concessions, Reuters reported.

(According to Reuters)

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