(Bloomberg Opinion) — Google faces a formal antitrust lawsuit from the European Union that could lead to huge new fines and hit the heart of the ad technology that drives most of corporate America’s revenue.
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The so-called objection statement, to be announced on Wednesday, would mark a new escalation in a long saga that has led to three EU sanctions for a total of more than €8 billion ($8.6 billion).
The new charges will focus on the core of Alphabet Inc.’s ad-tech unit’s business model, according to people familiar with the matter who spoke on condition of anonymity. Google’s advertising business is by far the most prosperous, accounting for around 80% of its annual revenue. By 2022, its ad sales will be around $225 billion.
The new complaint is the most important in the current five-year mandate of the European Commission, the EU’s antitrust watchdog, one of the people said.
Under EU rules, fines for antitrust violations can amount to up to 10% of global sales, although penalties rarely approach that level and companies have the right to defend themselves before and after a fine is imposed.
Google didn’t immediately respond to a request for comment. The Commission in Brussels declined to comment.
Google has long held a key position in being able to collect data that allows advertisers to target ads, as well as sell ad space and provide technology that allows advertisers to find publishers to sell their space.
The EU first opened an investigation into Google’s advertising technology practices in 2021. The Commission’s investigation has investigated how the company can block competitors’ access to user data for online advertising, as well as how you can protect data for your own use.
Google’s agreement with Meta Platforms Inc. as part of the Open Bidding program was originally part of the investigation, but was dropped at the end of 2022. In September 2022, the investigation was expanded after the Portuguese competition authority presented new evidence.
UK competition authorities have also investigated Google’s advertising practices and litigation into the company’s conduct is ongoing in the US.
At the same time, Google continues to fight EU antitrust fines in court, including a €4.34 billion fine for the way its Android mobile operating system operates.
An EU judge reduced the fine to €4.125 million last year, but Google filed a lawsuit in the block’s highest court.
Genuine Note: Google To Be Hit With EU Antitrust Charges For Misuse Of Advertising Technology
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