Google should break up digital ad business over competition concerns, European regulators say

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European Union regulators hit Google with fresh antitrust charges Wednesday, saying the only way to satisfy competition concerns about its lucrative digital ad business is by selling off parts of the tech giant's main moneymaker.

The unprecedented decision to push for such a breakup marks a significant escalation by Brussels in its crackdown on Silicon Valley digital giants, and follows a similar move by U.S. authorities seeking to bust Google's alleged monopoly on the online ad ecosystem.

Google can now defend itself by making its case before the commission issues its final decision. The company said it disagreed with the finding and "will respond accordingly," adding that the EU's investigation focused on a narrow part of its ad business. Online display ads are banners and text that appear on websites such as newspaper home pages and are personalized based on an internet user's browsing history.

Vestager added that if Google sold off, for example, its real-time marketplace for buying and selling ads or a tool for publishers to manage their ads, "we would put an end to the conflicts of interest." European and U.S. authorities are acknowledging that "the only way to address this egregious conflict of interest is to force Google to divest part of its business," said Max von Thun, director of the Europe office of the Open Markets Institute, a proponent of stronger antitrust enforcement.

 

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