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Technology|Google’s Online Advertising Practices Violate Antitrust Laws, E.U.
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GOOGLE’S ONLINE ADVERTISING PRACTICES VIOLATE ANTITRUST LAWS, E.U. SAYS

European Union regulators filed new antitrust charges against Google, which
could lead to fines and orders for the company to change its business practices.

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The case against Google marks the fourth time the company has been charged with
violating European antitrust laws in recent years.Credit...Yves Herman/Reuters


By Adam Satariano

Adam Satariano covers digital policy in Europe.

June 14, 2023Updated 7:43 a.m. ET

Google on Wednesday was charged with violating European Union antitrust laws by
using its dominance in online advertising to undercut rivals, the latest in a
string of cases around the world that strike at the core of the internet giant’s
business model.

The case was brought by the European Commission, the executive branch of the
27-nation European Union, and marks the fourth time Google has been charged with
violating European antitrust laws in recent years. In this instance, the E.U.
accused Google of abusing its control of the market for buying and selling
online advertising.

The European Union announcement follows similar charges brought against Google
in January by the U.S. Justice Department, which accused the company of
illegally abusing a monopoly over the technology that powers online advertising.
Britain’s antitrust authority has also been investigating Google’s advertising
practices.

The outcomes of the cases could have significant implications for Google’s
parent company, Alphabet, which reaped most of its $60 billion in profit last
year from advertising. Advertising underpins nearly all of Google’s most popular
services, including search, email, maps and Android, and allows the company to
offer them for free.



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“Google is present at almost all levels of the so-called adtech supply chain,”
Margrethe Vestager, the executive vice president of the European Commission who
oversees digital and competition policy, said in a statement. “Our preliminary
concern is that Google may have used its market position to favor its own
intermediation services.”


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“Not only did this possibly harm Google’s competitors but also publishers’
interests, while also increasing advertisers’ costs,” she added.



The new charges against Google are part of a long-running effort by the European
authorities to clamp down on the world’s largest technology companies. Apple and
Meta, which owns Facebook and Instagram, are also the subjects of antitrust
investigations. Last year, the European Union passed new antitrust and digital
services laws to tighten oversight of the biggest tech companies. And on
Wednesday, the European Parliament, a legislative branch of the E.U., passed a
draft law regulating artificial intelligence.

In recent years, the European authorities have fined Google billions of dollars
over what they say are antitrust violations related to its Android mobile
operating system, shopping service and another piece of its advertising
business. All the cases remain tied up in court after legal appeals by Google.

With the new charges, the European Commission unveiled what is known as a
“statement of objections” against Google, outlining why it believes the company
has violated antitrust laws. It is one step in what could be a long process
before final decisions are made about whether to impose a fine of up to 10
percent of Google’s global revenue or to order other changes to its business
practices. A settlement could also be reached.



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Google said it disagreed with the regulators’ finding and would “respond
accordingly.”

“Our advertising technology tools help websites and apps fund their content, and
enable businesses of all sizes to effectively reach new customers,” said Dan
Taylor, Google’s vice president of global ads. “Google remains committed to
creating value for our publisher and advertiser partners in this highly
competitive sector. The commission’s investigation focuses on a narrow aspect of
our advertising business and is not new.”

European regulators began investigating Google two years ago, focusing on the
display advertising market, which includes the banners and other visual formats
on websites. Google offers a number of services to advertisers and publishers in
this sector. It collects data to target advertising, sells ad space on websites
and offers products that serve as an intermediary between advertisers and
publishers who own websites.

In controlling so much of the online advertising supply chain, Ms. Vestager has
said Google makes it harder for rivals to compete. Publishers such as News Corp
have long complained that Google’s dominance limits how much money they can
generate from advertising put on their websites, or for rival services to
emerge.

The European Publishers Council, an industry group representing media companies,
applauded Wednesday’s action. The group said it filed a complaint over a year
ago describing how Google “leveraged their position to the disadvantage of
publishers.”

“We look forward to working with the commission as the case continues,” said the
council’s executive director, Angela Mills Wade.




Adam Satariano is a technology correspondent based in Europe, where his work
focuses on digital policy and the intersection of technology and world affairs.
@satariano

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