Google faces charges from EU
Google’s adtech business may have to be sold to address concerns around anti-competitive practices, according to the European Union. In a statement of objections, the commission highlighted practices such as favouring Google advertising services, which could result in the payment of a fine amounting to 10% of the company’s annual global turnover.
Google faces charges from EU: Key Points
- Around 79% of Google’s total revenue is generated by advertising, with its 2022 advertising revenue totalling $224.5bn.
- The company has disagreed with the commission’s charges and has a few months to respond. It could also potentially settle by offering stronger remedies than previously proposed.
Vestager confirmed that investigations into Google’s privacy sandbox and plan to limit access to its advertising identifier for third parties on Android will continue.
- The charge has been welcomed by the European Publishers Council, which filed a complaint to the Commission in 2019.
- The Commission accuses Google of favouring its own display advertising technology services over those of its competitors to the detriment of advertisers and publishers. Google holds 28% of global ad revenue.
- The company sought to settle the case within three months of the investigation’s launch, but regulators found the pace and concessions offered to be inadequate.