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Google faces EU break-up order

Ruchir by Ruchir
2 years ago
in News
0
Google faces EU break-up order

STORY: Google could face an EU break-up order.

The EU has charged the tech giant with anti-competitive practices in its digital advertising service.

Wednesday’s (June 14) announcement means the Alphabet-owned firm may have to sell part of that business.

The stakes are high for Google, as advertising is the company’s biggest money maker.

Its adtech unit made up 79% of total revenue last year.

Advertising revenue came in at $224.5 billion.

The European Commission has investigated the matter for two years.

On Wednesday, antitrust chief Margrethe Vestager warned Google may have to sell part of its adtech business.

That as regulators believe fixing some of its issues won’t stop anti-competitive practices.

The Commission said it took issue with Google favoring its own online display advertising technology services.

It alleged this hurt competing providers.

Google is the world’s dominant digital advertising platform, with more than a quarter market share of global ad revenue.

That’s according to research firm Insider Intelligence.

A Reuters source says the firm tried to settle the case, but regulators had become frustrated by its lack of major concessions.

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