Position statement of European Commission towards Google. The EU Antitrust has ordered the Mountain View company "mandatory transfer” of part of his online advertising services to put an end to the competition problems identified in the sector. The decision came after a preliminary investigation launched in June 2021 and was announced at a press conference by the European Commissioner for Competition Margrethe Vestager.
"Google controls both sides of the market of advertising technology: sale and purchase. We are concerned that it may have abused its dominant position to favor its own AdX platform. If confirmed, this is illegal. The European Commission could require Google to divest part of its services” Vestager tweeted.
EU Antitrust: “Google has violated European rules”
The Antitrust has delivered a chargeback notice to Google, accusing the company of having "violated EU rules" abusing its dominance in the ad tech supply chain. Brussels disputes the company of Promote your own "display" services (such as banners and videos) to the detriment of online competitors, advertisers and publishers.
The criticisms leveled at Google
The Commission first noted that, at least since 2014, Google has abused its dominant positions promoting your AdX ad exchange in ad selection auctions run by its dominant publisher ad server, DFP. For example, Google would inform AdX in advance of the value of its competitors' best bid that it had to outbid to win the auction.
Additionally, Google has favored its AdX ad exchange in how its ad buying tools, Google Ads e DV360, bid on ad exchanges. For example, Google Ads avoided competing with other ad exchanges and mostly placed bids on AdX, thus making it the most attractive ad exchange.
The Commission is concerned that Google's alleged intentional conduct to give AdX a competitive advantage may have sidelined competing ad exchanges. This would have strengthened AdX's central role in the adtech supply chain and Google's ability to charge high fees for its service.
If confirmed, such conduct would constitute a violation of Article 102 of the Treaty on the Functioning of the European Union (TFEU) which prohibits the abuse of a dominant position on the market.
Google replies: "We do not share the accusations"
Instant came the Google reply. "We do not share the point of view of the European Commission and we will respond accordingly. Our ad technology tools help websites and apps fund their content and enable businesses of all sizes to effectively reach new customers,” said Google's VP of Global Advertising Services. Under Taylor.
