Google’s ad-tech business facing possible threat of a break-up: report
European Union regulators are reportedly considering a demand for Alphabet-owned Google to divest a part of its advertising technology business due to concerns over anti-competitive practices. This follows multiple antitrust investigations launched over the past few years regarding the company’s alleged dominance in online advertising. The European Commission’s investigation into Google’s ad-tech business, launched in 2022, expressed concern over the company’s role at nearly all levels of the supply chain for online display advertising. Break-up orders from the EU competition regulator are uncommon, but recent frustration over Google’s failure to address competition issues has led to this possibility.
In response to the matter, neither Google nor the European Commission have made any statements. The Wall Street Journal initially reported this recent development.
FAQs:
Q: What is the EU concerned about in regards to Google’s advertising technology business?
A: The EU has expressed concern over Google’s alleged anti-competitive practices and the company’s dominant position in online advertising.
Q: Is it common for EU regulators to issue break-up orders?
A: No, it is rare for the EU competition regulator to order break-ups, but recent frustrations over Google’s lack of action has led to this possibility.
Q: Has Google responded to the situation?
A: No, Google has not yet made any statements regarding the matter.
Report highlights potential risks of Google’s ad-tech business being broken up.
Alphabet’s Google may soon be facing an order from EU antitrust regulators to sell off part of its advertising-technology business due to concerns over its dominance in online advertising and allegedly anti-competitive practices. The European Commission launched an investigation into Google’s ad-tech business last year, citing worry over Google’s presence at almost all levels of the supply chain for online display advertising. Break-up orders from the EU competition enforcer are rare, but sources say frustration has been mounting after Google failed to address competition concerns. The Commission and Google have yet to comment on the Wall Street Journal’s report that the break-up order may soon be on the table.