EU investigates Google's online advertising practices

On June 22, the European Union (EU) launched an antitrust investigation against Google, alleging that the US company used technology to "beat" rivals in the advertising market. Online advertising is highly profitable.

EU investigates Google's online advertising practices
EU investigates Google's online advertising practices

The EU statement said the investigation would "evaluate whether Google violated EU competition rules by prioritizing its own online display ad technology services".

The investigation focuses on a key part of Google's business model, with 80% of the "tech giant's 2020 revenue" coming from advertising - or $147 billion ($124 billion). billion euros).

The EU's competition commissioner, Margrethe Vestager, said the union was "concerned that Google has made it more difficult for its competitors to compete in online advertising services" in display advertising technology. image. The problem is that Google's technologies are largely unnoticed, but highly dominant, acting as an intermediary or broker between online advertisers and publishers.

This issue is also at the heart of a recent lawsuit in France, when News Corp, French daily Le Figaro and Belgium's Groupe Rossel jointly sued, resulting in Google being fined 220 million euros ($267 million). .

Like this case, the EU will seek to determine if Google misused its AdX and Doubleclick advertising technologies. The EU will also look into other aspects of Google's business, including a plan to ban third parties from placing "cookies" on the Chrome browser - a move that has left many publishers and advertisers frustrated. disgruntled.

In response to the EU's decision, a Google spokesperson said the company "will continue to be ready to answer questions from the European Commission in a constructive manner, while demonstrating the benefits of its products." the group brings to businesses and consumers in Europe".

Advertising activities on Google's platforms - including Google Search, YouTube and Gmail - contribute the majority of the company's revenue and profits. About 16% of Google's revenue comes from advertising or business networks, where other media companies use Google technology to sell ads on their websites or apps.

Google Tech News

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