Google may change ad tech amid EU's $3.4B penalty threat
What's the story
Google has proposed changes to its advertising technology products and search results in a bid to settle a potential $3.4 billion penalty from the European Union (EU), according to Bloomberg. The move comes after the company was accused of favoring its own services over competitors.' Alphabet, Google's parent company, announced this plan in a blog post on Friday."
Strategy
Plan to enhance ad tech products
As part of its proposed changes, Google plans to give publishers more control over their advertising strategies on the company's Ad Manager platform. This would include the option to set different minimum prices for bidders. The company also intends to improve interoperability across its ad tech services, giving publishers and advertisers more flexibility in their choices.
Legal stance
Google's appeal against EU's decision
Despite the proposed changes, Google remains firm on its position and plans to appeal against the EU's September decision. The tech giant still disagrees with the ruling, which found that it had abused its dominance by giving its own ad exchanges a competitive advantage. The EU antitrust regulator had ordered Google to stop these practices.
Resolution attempts
Efforts to resolve EU investigations
Google has been trying to find a balanced solution and close the EU investigations while warning about potential risks. A company spokesperson said they are concerned that any further changes to Search would prioritize the commercial interests of a small set of intermediaries over European businesses who want to sell directly to their customers.
Regulatory response
EU competition chief's stance on Google's ad tech arm
EU competition chief Teresa Ribera has said that the only way to ensure a level playing field in the industry would be for Google to divest unspecified parts of its ad tech arm. This comes after dealing with the penalty and demanding fixes due to alleged antitrust violations. However, this solution is still a step too far for the company.