Saturday, August 20, 2022

Google hit with € 1.49BN fine by EU for blocking rival advertisers


Izaan Zubair
Technology writer @ WNObserver

A new tile hits Google, once again hit by the EU, led by Margrethe Vestager, it is linked to the Google AdSense platform, which was used by the Californian giant to dominate the advertising market.

The penalty amounts to 1.49 billion and is added to the two large fines already issued in recent years, related to Android and Google Shopping.

Previously Google was fined €2.42bn for antirust offences in the online shopping industry in 2017, as well as a 2018 €4.34bn penalty for using its mobile operating system Android to bolster the dominance of its search engine.

According to research carried out by the Commission, Google requires that AdSense is the only system for searching for offers, preventing third-party sites from using different sources for their advertisements. Google would ask for a minimum number of search-related banners, with a privileged placement, and prior approval in the event of changes.

[penci_blockquote style=”style-2″ align=”none” author=””]” The Commission has verified over 200 agreements, finding at least one clause that has damaged the competition. There was no reason to include this restrictive clause, other than to keep the competition out of the market. Google has abused its dominant position to prevent websites from using broker systems other than the AdSense platform. “[/penci_blockquote]

The Commission said that Google’s practices harmed competition and stifled innovation.

“Google’s rivals were unable to grow and offer alternative online search advertising intermediation services to those of Google,” it said.

“As a result, owners of websites had limited options for monetising space on these websites and were forced to rely almost solely on Google.”

“The misconduct lasted over 10 years and denied other companies the possibility to compete on the merits and to innovate – and consumers the benefits of competition.”

According to the European Commission this behavior has reduced the possibility of choice by the market, drastically slowing down the innovation and the possibility, by third-party sites, to invest in new services. At the moment Google has not provided any official statement, but it is likely that a response will arrive in the coming days.

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