Google Faces EU Scrutiny as It Announces Changes to Advertising Services
Google announced significant changes to its advertising services on Friday, just a day after the European Commission launched a new digital competition probe into the company. This move comes two months after Brussels imposed a €2.95 billion antitrust fine on Google for allegedly favouring its own ad services. The fine, announced in September, had triggered a strong reaction from US President Donald Trump, who warned of fresh tariffs on the EU if the decision stood.
Addressing EU Concerns Over Ad Practices
The European Commission had accused Google of using its dominant position in online advertising to favour its own services, making it harder for rivals to compete. In response, Google proposed changes to its ad services to address these concerns. A Google spokesperson said, “Our proposal fully addresses the decision without a disruptive break-up that would harm the thousands of European publishers and advertisers who use Google tools to grow their business.” However, the company still disagreed with the EU’s ruling and plans to appeal the fine.
Immediate Product Changes
Google’s new plan includes immediate product changes aimed at improving fairness in online advertising. These changes include giving publishers the option to set different minimum prices for different bidders on Google Ad Manager. Additionally, the company said it would improve the interoperability of its tools for publishers and advertisers to address EU concerns over conflict of interest. The European Commission confirmed receiving Google’s commitments and said it would study them closely.
EU’s Ongoing Battle with Google
The EU has fined Google several times over the past decade for various antitrust violations. In 2018, Google was fined €4.1 billion for abusing the dominance of its Android system, and in 2017, it was fined €2.4 billion for anti-competitive practices in its price comparison service. The latest fine and new probe add to the long-running battle between Brussels and one of the world’s biggest tech companies. Meanwhile, the new probe, launched on Thursday, is examining whether Google is unfairly pushing certain news outlets down in search results, further increasing pressure on the company over its dominance in online advertising.
Global Scrutiny on Google’s Ad Practices
Google is not only facing scrutiny in the EU but also in the United States. A federal judge had earlier ruled against the company in a major adtech case, and Google is fighting to avoid a forced sale of key advertising units. Closing arguments in that case are expected Monday, and a decision could come in the following weeks or months. The changes announced by Google will now be examined by Brussels as it tries to balance strict enforcement of tech competition rules with concerns over escalating tensions with Washington.
Conclusion
As Google navigates the complex landscape of global antitrust regulations, the company’s recent changes to its advertising services mark a significant step towards addressing EU concerns. While Google continues to face scrutiny on both sides of the Atlantic, the outcome of these probes will have far-reaching implications for the tech industry. As the digital landscape evolves, it remains to be seen how Google will adapt to the changing regulatory environment and what impact these changes will have on the broader tech ecosystem.
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