Home Online Advertising The Hits Keep Coming, As EU Levels More Antitrust Charges Against Google

The Hits Keep Coming, As EU Levels More Antitrust Charges Against Google

SHARE:

EUvsGoogimgThe European Union’s antitrust commission on Thursday added two formal charges to Google’s ever-growing pile of regulatory burdens.

The first charge substantiates a previous objection claiming Google favors its own comparison shopping service in search results.

“It means consumers may not see the most relevant results to their search queries,” wrote European Commissioner for Competition Margrethe Vestager in an official release.

The second EU charge is around Google’s “AdSense for Search” product, in which Google acts as an intermediary by placing search ads on third-party websites. The Commission claims Google’s conditions around this service – partners must reserve premium space for Google inventory and Google must authorize competing ads – violates EU antitrust rules.

A Google spokesperson said, “We believe that our innovations and product improvements have increased choice for European consumers and promote competition.”

In a blog post last year, Amit Singhal, the former head of Google’s search and ranking team, acknowledged Google’s dominance in search, but repudiated claims of unfair practices by noting fragmentation in the search and intent market. Singhal cited competitors like Apple’s Siri, Microsoft’s Cortana, Amazon, eBay, Facebook and Pinterest, which aren’t core search engines but have still gained share of the digital shopping intent pie.

In today’s regulatory statements, the European Commission rejected this argument because it believes that “comparison shopping services and merchant platforms [like Amazon and eBay] belong to separate markets.”

Google is also trying to beat EU antitrust allegations around its Android operating system, because smartphone and mobile providers must use Google as the default search if they preinstall Google’s mobile OS.

There’s a chance the EU’s regulatory approach might migrate to the US. The Federal Trade Commission is also probing Google’s Android OS to examine concerns over market dominance, reported The Wall Street Journal earlier this year.

But the European Commission has more incentive than its US counterparts to take strong action against Google – and it has nothing to do with nurturing European tech startups. As European commentators recently noted, landing blows against Google has become a popular political tactic, in France and Germany in particular.

Must Read

Wall Street Wants To Know What The Programmatic Drama Is About

Competitive tensions and ad tech drama have flared all year. And this drama has rippled out into the investor circle, as evident from a slew of recent ad tech company earnings reports.

Comic: Always Be Paddling

Omnicom Allegedly Pivoted A Chunk Of Its Q3 Spend From The Trade Desk To Amazon

Two sources at ad tech platforms that observe programmatic bidding patterns said they’ve seen Omnicom agencies shifting spend from The Trade Desk to Amazon DSP in Q3. The Trade Desk denies any such shift.

influencer creator shouting in megaphone

Agentio Announces $40M In Series B Funding To Connect Brands With Relevant Creators

With its latest funding, Agentio plans to expand its team and to establish creator marketing as part of every advertiser’s media plan.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters

Google Rolls Out Chatbot Agents For Marketers

Google on Wednesday announced the full availability of its new agentic AI tools, called Ads Advisor and Analytics Advisor.

Amazon Ads Is All In On Simplicity

“We just constantly hear how complex it is right now,” Kelly MacLean, Amazon Ads VP of engineering, science and product, tells AdExchanger. “So that’s really where we we’ve anchored a lot on hearing their feedback, [and] figuring out how we can drive even more simplicity.”

Betrayal, business, deal, greeting, competition concept. Lie deception and corporate dishonesty illustration. Businessmen leaders entrepreneurs making agreement holding concealing knives behind backs.

How PubMatic Countered A Big DSP’s Spending Dip In Q3 (And Our Theory On Who It Was)

In July, PubMatic saw a temporary drop in ad spend from a “large” unnamed DSP partner, which contributed to Q3 revenue of $68 million, a 5% YOY decline.