Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Exclusive-Google offers to settle EU antitrust probe into digital advertising - source

Published 23/09/2021, 14:56
Updated 23/09/2021, 16:41
© Reuters. FILE PHOTO: A sign is pictured outside a Google office near the company's headquarters in Mountain View, California, U.S., May 8, 2019.  REUTERS/Paresh Dave/File Photo

© Reuters. FILE PHOTO: A sign is pictured outside a Google office near the company's headquarters in Mountain View, California, U.S., May 8, 2019. REUTERS/Paresh Dave/File Photo

By Foo Yun Chee

BRUSSELS (Reuters) -Alphabet unit Google (NASDAQ:GOOGL) is seeking to settle an EU antitrust investigation into its digital advertising business, a person familiar with the matter said, a move that could help it stave off a disruptive, lengthy probe and a possible hefty fine.

EU antitrust cases have cost Google more than 8 billion euros ($9.4 billion) in fines in three different cases in the last decade and it has also been ordered to change its business practices to allow rivals to compete.

The European Commission opened an investigation in June into whether Google favours its own online display advertising technology services to the detriment of rivals, advertisers and online publishers.

Google has made a proposal to the Commission, the person said, declining to provide details because of the sensitivity of the matter.

The Commission, which acts as the competition enforcer for the 27-country bloc, declined to comment.

Google, which will face off with the enforcer at a 5-day court hearing next week over its record 4.34-billion-euro fine related to its Android mobile operating system, did not respond to Reuters' requests for comment.

It remains to be seen whether European antitrust chief Margrethe Vestager is open to settlement talks which typically take months or even years before any agreement can be reached or they could stall mid-way.

She has in her last three Google cases preferred sanctions instead of negotiating a solution. A settlement decision would include no fine and no finding of wrongdoing.

Google could face a fine up to 10% of its global turnover amounting to $18.2 billion based on last year's revenue if found guilty of breaching EU antitrust rules.

Regulators will examine whether Google restricts third party access to user data for advertising purposes on websites and apps, while keeping such data for its own use.

The company's plan to remove browser cookies and also to stop tracking Android users via a tool known as an advertising identifier will also come under scrutiny.

Last year, Google made $147 billion in revenue from online ads, more than any other company in the world, with ads including search, YouTube and Gmail accounting for the bulk of its overall sales and profits.

About 16% of its revenue came from the company's display or network business, in which other media companies use Google technology to sell ads on their website and apps.

Research company eMarketer estimated Google will capture 30% of the global internet advertising market this year while increasing sales by 18% to $117 billion.

Trials in U.S. advertising cases brought against Google by state and federal governments as well as several private companies are not expected to begin for at least two more years.

Google has also sought to settle another advertising probe recently. In June, it pledged to work closely with the UK Competition and Markets Authority on the company's plan to remove tracking cookies from the Chrome browser because the move raised antitrust concerns from the advertising industry.

The regulator is currently weighing whether to accept Google's concessions.

© Reuters. FILE PHOTO: A sign is pictured outside a Google office near the company's headquarters in Mountain View, California, U.S., May 8, 2019.  REUTERS/Paresh Dave/File Photo

The United States and the EU are looking to work more closely in regulating Big Tech at a summit next week.

($1 = 0.8531 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.