According to sources, Google may sell its advertising platform AdX to end the EU's antitrust investigation into its advertising business. Legal experts point out that at this stage, the EU is unlikely to require Google to divest assets, but is more likely to order it to stop anti-competitive behavior. Google is currently also facing antitrust litigation in the field of advertising with the US Department of Justice.
$Alphabet-A (GOOGL.US)$In a battle against the US Department of Justice on antitrust lawsuits, Google seems willing to make concessions first to end the European Union's antitrust investigation, according to informed sources.
According to two informed sources on Wednesday, Google is willing to sell its advertising trading platform, AdX, which allows publishers to provide their unsold ad space in real-time to an intermediary marketplace for advertisers. However, European publishers have stated that selling AdX alone is not sufficient.
Meanwhile, US antitrust regulators hope to force Google to sell its ad manager products, including AdX and Google's publisher ad server (DFP).
Three antitrust lawyers revealed that Google has never proposed selling assets or any compromise in previous antitrust cases. This highlights the significant pressure that Google currently faces in the field of antitrust.
Ongoing antitrust investigations.
Insiders point out that European publishers hope that Google will not only divest AdX. Testimonies from various publishers have shown that Google has a strong monopoly power in the advertising field and has used this power to harm competitors as well as the interests of publishers and advertisers.
In 2019, the European Commission ruled that Google abused its dominant position in the advertising industry, preventing its customers from using services from other brokers. As a result, the EU imposed a fine of up to 1.49 billion euros on Google.
However, this penalty was revoked on Wednesday. The European Court stated that the European Commission had made mistakes in assessing the antitrust situation and failed to consider all relevant circumstances.
However, this is just one of the many troubles Google faces in Europe. The European Union imposed a total of 8.2 billion euros in fines on Google for antitrust investigations between 2017 and 2019.
According to sources, due to the complexity of the case, it is unlikely that the European Commission will currently require Google to divest its assets, but it may make such a request in the coming months to order Google to stop its alleged anti-competitive behavior. If Google does not comply with the relevant orders, the European Union may issue a withdrawal order.
Despite being targeted by regulatory authorities in Europe and the United States, Google's public stance remains firm. Google stated that the European Commission's accusations against its third-party display advertising products were a misinterpretation of the advertising technology industry, which is highly competitive and rapidly evolving, and that Google is still committed to developing this business.
So far, Google has not responded to the possibility of selling AdX.
Editor/ping