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Google made 147 billion from online advertising last year (file)

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Brussels:

The alphabet unit Google could face its biggest regulatory threat, with European Union (EU) distrust regulators saying they would launch a formal investigation into its lucrative digital advertising business before the end of the year, people familiar with the matter said.

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This will mark a new front by EU competition enforcers against Google. It has fined the company more than 8 billion euros ($ 9.8 billion) over the past decade for blocking competitors in online shopping, Android smartphones and online advertising.

Google’s position in a European Union investigation will focus on Visit-a-Viz advertisers, publishers, intermediaries and competitors, a man said, indicating a deeper investigation than the end of the French unfaithful agency case last week.

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Google made 7 147 billion last year from online advertising, more than any other company in the world. Ads on its features, including search, YouTube and Gmail, account for the bulk of sales and profits.

About 16% of the revenue came from its display or network business, where other media companies use Google technology to sell ads on their websites and apps.

Both units are on fire. The U.S. Department of Justice, joined by several states, sued Google last year for abusing its dominance in search advertising. In a subsequent lawsuit, a group led by Texas focused on anti-rival behavior on the home network side.

France Business settled for ২ 2 million and অভিযোগ 2 million in business commitments last week over similar allegations related to the network business, and the unit will have to work closely with the UK’s competition regulator to change the software as part of the deal.

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The commission declined to comment. Google did not immediately respond to a request for comment.

A new EU probe could end up targeting Google’s entire advertising empire. Market researcher E-Marketer expects Google to control 27% of online advertising spending globally this year, with 57% of search ads and 10% display.

The numbers may not seem exclusive at first, but advertisers and competitors claim that Google’s various software markets play a role in many areas that companies are unlikely to avoid.

They say that Google has taken advantage of the reliance on buyers, sellers and intermediaries to raise high fees on all sides and to ban competitors from competing with each other.

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In a questionnaire sent to Google competitors and third parties earlier this year and viewed by Reuters, an EU observer asked if there was a discount when advertisers used Google intermediaries to allow advertisers or media agencies to buy ad lists from multiple sources.

Thomas Happner, a Law Commission housefield partner and advocate for plaintiffs against Google, said the commission should end ongoing lawsuits before starting a new lawsuit.

“From a practice perspective and from an industry perspective, ending an investigation into local search and Google job search seems equally important when other authorities have begun investigating Google’s Adtech,” he said.

(Except for the title, this story was not edited by NDTV staff and was published from a syndicated feed))

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