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Google accused of violating antitrust laws in Europe

By Nithya Bose in UK Business & Employment News, posted June 15, 2023

Google is facing new antitrust charges from the European Union, again accusing the tech giant of leveraging its dominance in the online advertising sector to harm rivals.

This marks the fourth time Google has been charged with violating European antitrust laws.

The charges follow similar actions the US Justice Department and Britain's antitrust authority took against the tech giant’s advertising practices.

The outcome of these cases could have far-reaching implications for Google owner Alphabet, as advertising constitutes a significant portion of its annual profits.

Google's advertising services support its popular offerings like search, email, maps, and Android, allowing the company to provide these services for free.

The European Commission's executive VP Margrethe Vestager said Google's market position may have favored its own intermediation services.

She said it potentially harms competitors and publishers and increases advertisers' costs.

The CU has been actively pursuing antitrust probes against major tech players, including Apple and Meta, to tighten oversight in the digital sector.

In recent years, Google has faced significant fines from European watchdogs related to antitrust violations concerning its Android mobile operating system, shopping service, and other advertising practices.

The cases are currently under appeal.

The European Commission has presented a "statement of objections" against Google, outlining its allegations of antitrust violations.

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The process could lead to fines of 10 percent of Google's global revenue or require changes to its business practices. Settlement negotiations are also possible.

The firm has responded by disagreeing with the regulators' findings and stating its commitment to creating value for its partners in the advertising industry.

The investigation focuses on a specific aspect of its advertising business related to display advertising.

Publishers, such as News Corp, have long complained about Google's dominance and its impact on their ability to generate advertising revenue and foster competition in the market.

The European Publishers Council, representing media companies, has expressed support for the action taken by the European Union.

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