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| Google's ad empire faces new European problems |
Google may face its biggest regulatory threat as EU antitrust authorities open a formal investigation into its lucrative digital advertising business before the end of the year.
This is a new front for the EU antitrust body against Google.
Over the past decade, the agency has fined the company more than 8 billion euros ($9.8 billion). Because it prevents competitors in the areas of online shopping, Android smartphones, and online advertising.
Reuters reports that a European Union investigation aims to examine Google's attitudes toward advertisers, publishers, intermediaries and competitors, suggesting that its investigation is more comprehensive than the findings of last week's French antitrust case.
Last year, Google's online advertising revenue was $147 billion. More than any other company in the world.
Advertising in its products (including search, YouTube, and Gmail) makes up the bulk of its sales and revenue.
About 16% of sales come from ad networks. Other media companies use Google's technology to sell ads on their websites and apps.
Google Ads Empire:
The US Department of Justice sued Google last year for abuse of control over search ads.
In subsequent lawsuits, a group of states led by Texas focused on exposing anti-competitive behavior.
Last week, France fined Google $268 million and made various commitments over similar allegations related to its display business.
As part of the settlement, Google must also work with the UK Competition Authority on upcoming software changes.
The new EU investigation could target the entire Google ad empire.
Research firm eMarketer expects Google to control 27% of global online advertising spending this year. This includes 57% of search ads and 10% of display ads.
Advertisers say Google's various plans play a role in many aspects of the market that the company cannot avoid.
They said that Google uses the trust of buyers, sellers, and intermediaries to earn high commissions from all parties to prevent competitors from playing fair.
In a survey sent to Google's competitors and third parties earlier this year, EU regulators questioned whether advertisers would receive discounts for using Google's intermediaries, allowing advertisers or media agencies to purchase ad inventory from multiple sources.