Google is facing a call for it to be broken up in Europe after regulators in Brussels said the search engine had consistently abused its position in the ad market.
In a ratcheting up of the row with the trading bloc, Margrethe Vestager, the EU’s competition chief, posted a “statement of objections” citing alleged illegal tactics that have led to Google being able to overcharge and dominate the market.
Google has already been fined €8bn by the EU Commission for three incidents but this latest move sparks another level in their ongoing battle with Vestager never before calling for the company to be broken up.
“It is a reflection of how pervasive Google is in this value chain that we think divestiture is the only way to solve this,” she said.
Splitting up the business would see ad purchasing arms Google Ads and DV 360 divested to ease what the EU sees as a conflict of interest with online ad sales and auction arms, AdX and DFP.
Advertising generates up to 80% of Google’s annual turnover and in response, Google’s VP of global ads, Dan Taylor, rejected the EU’s conclusions.
“The Commission’s investigation focuses on a narrow aspect of our advertising business and is not new. We disagree with the EC’s view and we will respond accordingly.”
Google is also under investigation in the UK with Competition and Markets Authority chief executive saying: “We’re worried that Google may be using its position in ad tech to favour its own services to the detriment of its rivals, of its customers and ultimately of consumers.”