Google's proposal to sell part of its advertising technology business, specifically its AdX marketplace, has been rejected by European Union (EU) publishers, sources informed Reuters. This move was intended to resolve an EU antitrust investigation, but publishers deemed it insufficient, pushing for more comprehensive divestments to address concerns about Google’s dominance in the ad tech sector.
The EU's investigation is centered on accusations that Google unfairly favors its own advertising services, which could stifle competition in the digital ad market. The case follows a complaint from the European Publishers Council and is the fourth antitrust action launched by the European Commission against Google.
Google’s 2023 advertising revenue reached $237.85 billion, representing 77% of the company's total revenue. This includes services from its search engine, Gmail, and YouTube. Despite Google's offer to divest AdX, European publishers are seeking more significant changes, reflecting concerns about Google’s continued control over the digital advertising space.
Margrethe Vestager, the EU's antitrust chief, had previously suggested that Google divest its sell-side tools, including the DoubleClick for Publishers (DFP) ad server and AdX, as a way to resolve conflicts of interest. While divestiture is seen as one potential remedy, sources indicate that the European Commission may not immediately mandate asset sales. Instead, the regulatory body could first require Google to cease its allegedly anti-competitive practices, with a potential divestment order following if the company fails to comply.
In response, a Google spokesperson defended the company’s position, arguing that the European Commission's case is based on flawed interpretations of the ad tech sector, which Google describes as highly competitive and fast-changing.
Google is also facing similar antitrust battles in the United States, where regulators are attempting to force the company to sell its Ad Manager product as part of a broader effort to curb its dominance in the advertising technology market.