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

BRUSSELS — 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 27-nation EU has led the global movement to crack down on Big Tech companies — including moving closer to groundbreaking rules on artificial intelligence — but it has previously relied on issuing blockbuster fines, including three antitrust penalties for Google worth billions. “Our advertising technology tools help websites and apps fund their content, and enable businesses of all sizes to effectively reach new customers,” said Dan Taylor, Google vice president of global ads. “Google remains committed to creating value for our publisher and advertiser partners in this highly competitive sector.”

European Commission Vice President Margrethe Vestager says Google is dominant on both sides of the ad-selling market. Google abused that position by favoring its own ad exchange, reinforcing its ability to charge a high fee for its services, the commission said. The commission is seeking a forced sale because past cases that ended with fines and requirements for Google to stop anti-competitive practices have not worked, allowing the company to continue its behavior, “just under a different disguise,” she said.

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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