The European Union has started an antitrust investigation concerning Google’s tremendous advertising business, guaranteeing that the organization may have distraught rival services, making it harder for brands to reach at buyers and for publishers to fund their content.
The proper investigations, which follows a fundamental test that started in 2019, will inspect whether Google (GOOGL) is twisting competition by confining admittance to client data for advertising purposes, while holding such data for its own use.
As indicated by the European Union (EU), Google gathers information to be used for designated advertising purposes, it sells promoting space and furthermore goes about as a web based advertising intermediary. So Google is available at practically all levels of the production chain for online display advertising.
According to EU (the supranational organization), they are worried that Google has made it harder for rival online advertising services to contend in the supposed advertisement tech stack.
A Google representative said that the organization would connect usefully with the European Commission to respond to their questions and demonstrate the advantages of their products to European organizations and buyers.
Google is currently confronting a few antitrust cases in the United States, including one brought by the national government, which blames the organization for working an unlawful imposing business model in the business sectors for online pursuit and search promoting.
The organization makes about 80% of its income from advertising. In the three months finished March 31, Google’s incomes in Europe, Middle East and Africa added up to $17 billion, making it the second most significant locale to the organization after the Americas.
Absolute display advertising spending in the European Union was worth about €20 billion ($24 billion) in 2019. It’s a business overwhelmed by Google and Facebook (FB), which is as of now being examined by EU controllers over claims that its utilization of information gives it a baseless benefit.
Also, France’s opposition authority fined Google €220 million ($270 million) recently “for manhandling its prevailing position” on the lookout for internet advertising to the inconvenience of rival platforms and publishers.
The government blamed Google for giving “special treatment” to Google Ad Manager, its advertisement management platform for enormous publishers. It did this by preferring its own online ad ad market centre, AdX, where publishers sell space to advertisers progressively, as per the watch dog.
Google provides several ad tech services that intermediate between advertisers and publishers in order to display ads on websites or mobile apps. The EU investigation will focus on a number of areas of concern, including the obligation to use its services to purchase or serve ads on Google or YouTube.
The EU says air competition is important — both for advertisers to reach consumers on publishers’ sites and for publishers to sell their space to advertisers, to generate revenues and funding for content. Hence, they will also be looking at Google’s policies on user tracking to make sure they are in line with fair competition.
Google also says, competition in online advertising has made ads more affordable, reduced ad tech fees and created more options for publishers and advertisers. The company also says that publishers keep about 70% of the revenue when using its products, and that the biggest advertisers use four or more platforms to buy ads.