The leading antitrust regulator in Europe has indicated the possibility of breaking up Google's ad-tech business, accusing the tech giant of exploiting its dominant position in the online advertising technology sector. This development aligns Europe with the United States' antitrust efforts against Google's ad-tech operations, which could reshape the overall landscape of ad transactions on websites and applications.
The commission's preliminary view suggests that Google may be required to divest certain parts of its ad-tech business to address the inherent conflicts of interest. This could include selling off its ad server used by website publishers and its advertising exchange.
Why it matters
Google will be given an opportunity to address the formal complaint from the commission before any conclusive ruling is made. If found guilty of breaching EU competition laws, the company may face a fine of up to 10% of its global annual revenue. However, Google retains the right to appeal the decision in an EU court.