Google's advertising technology business may be ordered by EU regulators to sell part of the business as antitrust violations

Many people may think of 'Google' as a search engine or YouTube, but Google's main pillar of revenue is online advertisements that are displayed everywhere on the Internet. Google's advertising business has been facing numerous investigations and lawsuits for a long time, saying that it may be in violation of the antitrust law, and the new EU antitrust law (antitrust law) regulatory authority is on Google On the other hand, it was reported that it may order the sale of the advertising technology business.

Google Faces New EU Antitrust Complaint for Ad Tech Abuses (GOOG) - Bloomberg
https://www.bloomberg.com/news/articles/2023-06-12/google-faces-new-eu-antitrust-complaint-for-ad-tech-abuses-goog

EU regulators may demand Google to sell part of ad-tech business - source | Reuters
https://www.reuters.com/technology/eu-regulators-may-demand-google-sell-part-adtech-business-source-2023-06-12/

Breakup of Google Ad-Tech Business Now on Table in Europe, Too - WSJ
https://www.wsj.com/articles/breakup-of-google-ad-tech-business-now-on-table-in-europe-too-d74cc355

Google's ad tech dominance spurs more antitrust charges, report says | Ars Technica
https://arstechnica.com/tech-policy/2023/06/googles-ad-tech-dominance-spurs-more-antitrust-charges-report-says/

Google, which is involved in a wide range of businesses such as search engines, video platforms, and mobile OS, has been investigated by regulatory authorities in various countries for antitrust violations in various fields, and has totaled billions of dollars (several thousand dollars) since 2017 alone. billions of dollars in fines.

Among them, online advertising, which is the pillar of Google's revenue, has been under scrutiny, and in January 2023, the US Department of Justice announced that ``Through anti-competitive, exclusive and illegal conduct, it will be superior in digital advertising technology. filed an antitrust lawsuit against Google.

Google is sued for antitrust violations in the advertising market, Google argues that ``a huge competitive market is being ignored''-GIGAZINE

In 2008, Google acquired DoubleClick , which handles online ad distribution infrastructure, and in 2009, it acquired AdMob , which provides mobile advertising options. I have grown. The problem with regulatory authorities in each country is that 'Google's services intervene at multiple points in the online advertising buying process.'

According to the U.S. Department of Justice, Google's ad server, DoubleClick for Publishers, which sells advertising space from publishers, has a market share of more than 90%, and the market share of platforms where advertisers purchase advertising space also boasts dozens of percent. It is said that there is. In addition, it seems that the share rate of Ad Exchange, which matches advertising space and advertisers, has reached 50%.

Regulators argue that Google maintains its dominance by deploying services on both the sell and buy sides of online advertising, building a dominant position. In response, Google argues that ``publishers and advertisers use Google's tools because they are competitive and effective in the advertising market.''

According to Insider Intelligence , a digital marketing research company, Google is the world's most dominant online advertising platform, accounting for about 28% of global advertising revenue. Alphabet, Google's parent company, reports that Google advertising revenue reached $ 54.548 billion (about 7.3 trillion yen) in the first quarter of 2023.

Google's advertising revenue and YouTube's revenue further decline, while cloud business Google Cloud finally turns profit-GIGAZINE

It has been reported that the EU antitrust regulator is planning to file a new antitrust complaint against Google, and as part of that, an order to sell Google's ad technology business is being considered. rice field.

The Wall Street Journal, a daily newspaper that reported on the matter, said: ``As part of the lawsuit, EU authorities are considering ordering Google to sell part of its ad tech business, the sources said. ``It is unusual for the European Commission (EC) to order a company split in cases of antitrust violations, and many are resolved with fines or orders to change the code of conduct,'' he said.

The EU antitrust complaint is expected to be filed as early as Wednesday, June 15, 2023. Technology media Ars Technica said, ``Google's ad technology business is very valuable, so Google will probably show a fighting attitude when the EU accusation is announced.''