Breaking News
Get 40% Off 0
👀 Reveal Warren Buffett's stock picks that are beating the S&P 500 by +174.3% Get 40% Off

Google against potential EU break-up order, says not proportionate

Published Dec 08, 2023 12:01PM ET Updated Dec 08, 2023 01:11PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: An illuminated Google logo is seen inside an office building in Zurich, Switzerland December 5, 2018. REUTERS/Arnd Wiegmann/File Photo
 
GOOGL
-0.95%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Foo Yun Chee

BRUSSELS (Reuters) -Alphabet's Google (NASDAQ:GOOGL) on Friday criticised a potential order from EU antitrust regulators to sell part of its lucrative adtech business, saying it was disproportionate and not right for its advertising partners.

The comments from Google's director Oliver Bethell and its vice president for global ads Dan Taylor came after the U.S. tech giant responded to EU charges issued to the company in June.

"We are opposed to divestment. We don't think that's the right outcome for this case. We think this is a tremendously efficient part of our business," Bethell told reporters.

"And that kind of remedy would be disproportionate in the circumstances and we have explained that to the Commission in our response to their statement of objections," he said.

The European Commission said Google has since 2014 abused its dominance in the online advertising technology industry via its market power on both sides of the supply chain.

It has done that, the Commission says, by ensuring that both its intermediation tools on the buy-side and on the sell-side would favour its own ad exchange AdX in the matching auctions.

Taylor said it was common practice in the industry to serve both advertisers and publishers, with a number of rivals doing the same.

"There are many firms that have competing adtech businesses with us, Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT), Criteo, Comcast (NASDAQ:CMCSA) and others," he told reporters.

"They offer ad platforms and tools like ours that cater to both advertisers and publishers. Now it is common to do this in the industry because it benefits both advertisers and publishers," Taylor said.

"Integrated technology stacks will make it easier to provide high quality connections that match the right advertiser to the right ad slot on a publisher page."

The stakes are higher for Google in this latest clash with regulators as it concerns a portion of the company's advertising business which accounted for 79% of total revenue last year and making it its biggest money maker.

Its 2022 advertising revenue, including from search services, Gmail, Google Play, Google Maps, YouTube adverts, Google Ad Manager, AdMob and AdSense, amounted to $224.5 billion.

Google can ask for a closed hearing to plead its case before senior EU and national antitrust officials before a ruling is issued, which could come next year.

Google against potential EU break-up order, says not proportionate
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email