European Union is all set to deal another massive blow to the US technology giant Google through a formal antitrust complaint. Bloomberg reported that the EU could launch the charge sheet against Google as soon as Wednesday, which could result in the EU imposing more fines on the US company along with targeting its highly successful ad tech model.
It must be noted that Google generates about 80 per cent of its total revenues from the advertising business, and any rule by the EU targeting its ads model could have a major impact on the company’s performance.
The toughest ever anti-Google move by the EU
The EU’s recent move against Google is considered to be the toughest ever taken by the EU’s watchdog. Earlier, the EU launched an investigation against Google back in 2021, which aimed at examining whether Google obstructed rivals’ access to user data for online advertising and if it unfairly ring-fenced data for its own use.
Under EU regulations, fines for antitrust violations can be as high as 10 per cent of a company’s global sales. However, it is uncommon for penalties to reach such levels, and companies have the opportunity to defend themselves both before and after fines are imposed.
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Google has held a dominant position in the industry, enabling it to gather data that facilitates targeted advertising, sell ad space, and provide the technology that connects advertisers with publishers.
Google in hot waters across nations
The UK’s competition authority has also been examining Google’s ad tech practices, while ongoing litigation against the company’s conduct is underway in the United States.
Simultaneously, Google is actively contesting antitrust fines imposed by the EU in court, including a landmark penalty of €4.34 billion for its management of the Android mobile operating system. Last year, EU judges reduced the penalty to €4.125 billion; however, Google is currently challenging the case at the highest court within the EU.
The outcome of the EU investigation into Google’s ad tech practices could have far-reaching implications for the tech giant, potentially resulting in significant fines and regulatory action.
