Google warns EU it will fight against ad business break-up

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In a recent letter to EU watchdogs, Google warned it won’t accept the mandatory divestment of part of its services deemed by the EU’s antitrust chief as “the only way” to restore competition.

Alphabet Inc.’s Google has vowed to fight the European Union’s threat to break up its ad business, setting the scene for an antitrust battle that could eventually rival its ongoing clash with the US Justice Department and state attorneys general.Google is set to formally oppose the EU’s June statement of objections before the end of the year, said a person familiar with the content of the letter, who spoke on condition of anonymity.

The EU case is a direct attack on the black box of online advertising where Google automatically calculates and offers ad space and prices to advertisers and publishers as a user clicks on a web page. A statement of objections sets out the EU’s findings and is usually — though not always — a precursor for fines or orders for companies to change their business practices.

 

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