Google Proposes Adtech Changes to Avoid EU Breakup After Antitrust Fine

Key Takeaways

• Google proposes adtech changes to avoid EU breakup order
• Comes after €2.95 billion antitrust fine for self-preferencing
• Changes include publisher pricing controls and tool interoperability
• EU will now assess if proposals address competition concerns

Google has announced significant changes to its advertising technology services in response to a massive EU antitrust fine, aiming to prevent a potential breakup order. The European Commission had imposed a €2.95 billion penalty in September for Google favoring its own services, giving the company 60 days to address competition concerns.

The tech giant maintains it will appeal the fine while proposing operational changes. “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,” a Google spokesperson said.

EU Scrutiny and US Parallels

The announcement comes amid heightened regulatory pressure on both sides of the Atlantic. Just one day before Google’s proposal, the European Commission launched another probe into whether Google unfairly demotes certain news outlets in search rankings.

Simultaneously, Google faces similar challenges in the United States, where a federal judge ruled against the company’s adtech practices earlier this year. The company is fighting to avoid a forced sale of its adtech business in Virginia, with closing arguments expected soon.

Proposed Changes

Google’s plan includes immediate product modifications, particularly for Google Ad Manager. Publishers will gain the option to set varying minimum prices for different bidders, addressing some competition concerns.

To counter EU accusations of conflict of interest, Google committed to enhancing interoperability between its tools for publishers and advertising advisers. This would potentially allow easier integration with competing services.

EU Response and Historical Context

The European Commission confirmed receipt of Google’s proposal. “We will now analyse Google’s proposed measures to assess whether they effectively bring the self-preferencing practices to an end and address the situation of inherent conflicts of interest,” a commission spokesperson stated.

This represents the latest chapter in Brussels’ ongoing scrutiny of Google’s business practices. The company faced a €4.1 billion fine in 2018 for Android market dominance abuse and a €2.4 billion penalty in 2017 for anti-competitive practices in price comparison markets. The EU further accused Google in March of favoring its own services in an ongoing digital competition probe.