Google To Fight Against EU
Google has warned the EU (European Union) that it will fight against the threat to disband its ad business.
This could lead to an antitrust battle that could potentially rival the ongoing clash with the U.S. Justice Department and state attorney’s general.
In a recent letter to the EU, Google advised it won’t be accepting the mandatory divestment of part of its services.
The company are set to formally oppose a June statement of objections from the EU before the end of the year.
A move like this could result in more years of legal wrangling with regulators from the EU, who accused the company of favouring its ad exchange program over others, which boosted its central role in the ad tech supply chain.
Back in June, the EU claimed it was concerned Google’s alleged intentional conduct in the supply chain, giving AdX (its own exchange) an advantage that could have foreclosed other ad exchanges.
This case is a direct attack on online advertising where Google automatically calculates and provides ad space and prices to advertisers as consumers click on websites.
A Google spokesperson has commented but only referred to a previous blog post in which the company say the EU’s complaint doesn’t “recognize how advanced advertising technology helps merchants reach customers and grow their businesses.”
A statement of objections outlines the EU’s finding and is most likely a precursor for fines or orders that lead to companies changing their practices. Receiving firms are able to contest filings in writing or at oral hearings. When the EU makes a final decision, companies can also sue.
An EU team has fined Google 8.3 billion euros (approx. $13 billion AUD) in total, including abusing dominance on mobile, and display advertising operations. Google is appealing all of these.
The biggest and most recent case was overshadowed by US events, where Google is being sued by the US Justice Department in a case that could result in breaking up the company.
This is focusing on agreements between Google and other companies to make the search engine the default in browsers.