Google Faces Massive Fine for Abusing Online Advertising Market

This article was last updated on June 14, 2023

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European Commission Accuses Google of Abusing its Power in Online Advertising

The European Commission is accusing Google of abusing its dominant position in the online advertising market. The commission’s initial investigation shows that Google pushed out competitors and prioritized its own advertising services, resulting in missed opportunities for rivals. Google, whose primary revenue stream is generated from selling online ads and connecting advertisers to their target audiences, has been accused of exploitation since 2014, according to the report.

Penalty for the Search Engine Giant

If further investigations confirm the findings, the search engine giant could face a penalty amounting to billions of euros. This represents 10% of the company’s global annual revenue.

First Online Advertising Survey

The Commission’s investigation began in 2021 and represents the first inquiry into online advertising practices.

Google Denies Allegations

Google has denied the European Commission’s allegations, “Our advertising services help websites and apps pay for their work and enable them to reach new customers,” said Dan Taylor, Google’s head of advertising.

Taylor stated that the investigation only focused on a small portion of Google’s advertising services. “Google remains committed to helping publishers and advertisers in this competitive industry.”

Impact on Online Advertising

Google’s advertising practices have been a source of debate for many years, and some believe the investigation and potential fine could have far-reaching consequences for the online advertising industry. The European Union’s move indicates that regulators are cracking down on the power of big tech, and other firms may also be investigated.

A Solid Precedent for EU?

The decision could also have repercussions for tech companies that use their dominance in one market to gain an unfair advantage in another.

Conclusion

The European Commission’s investigation into Google’s advertising practices could lead to a significant fine that could weaken the company’s dominant position in the online advertising market. The decision will also set a precedent for future investigations into big tech’s business practices, as regulators become more aggressive in their pursuit of fair competition.