EU may be preparing to force Google to split its ad business

The European Union recently proclaimed its belief that Google has been guilty of misusing its online advertising technology, thereby deeming it necessary to forcibly dismantle its advertising enterprise.

According to the relevant declaration, the European Union finds it challenging to compel Google to segregate its advertising operation independently. As a result, they may resort to more stringent measures to address the alleged misuse within Google’s advertising sphere.

In the elaboration of Margrethe Vestager, the Executive Vice President of the European Commission and head of antitrust, it is surmised that Google might have exploited its significant market share to tilt the scale in favor of its own advertising business, thereby inhibiting the growth of competitors and potentially escalating the cost of ad placements.

The European Union emphasizes that the issue does not lie in Google providing advertising technology or platforms, but rather in the sheer size of its market share, which grants its advertising operation an undue advantage. This leads both advertisers and intermediary matchmakers to prefer Google’s transaction platform, limiting the growth of other online advertising platform operators in comparison.

Considering the limited potential for improvement if Google were to adjust its operations, the European Union is currently inclined to enforce a dismantling of Google’s advertising operations to effectively counter the monopoly that it may create.

In the past, Google has faced antitrust allegations within its advertising operations on American soil, even being demanded by the Department of Justice to divide its advertising business. However, Google has not made any corresponding adjustments as of yet. With the European Union prepared to exert pressure, it may necessitate Google to reconsider its advertising operation strategies.