'Google is present at almost all levels of the supply chain' for online ads: It's time for a competition probe, says EU
- Reference: 1624389605
- News link: https://www.theregister.co.uk/2021/06/22/google_online_ads_competition/
- Source link:
The commission today opened a formal antitrust investigation to figure out if Google has "violated EU competition rules… to the detriment of competing providers of advertising technology services, advertisers and online publishers."
In an announcement, the commission said it would examine whether "Google is distorting competition by restricting access by third parties to user data for advertising purposes on websites and apps, while reserving such data for its own use."
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In a statement, EC executive VP Margrethe Vestager, in charge of competition policy, explained that online advertising services "are at the heart of how Google and publishers monetise their online services."
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"Google collects data to be used for targeted advertising purposes, it sells advertising space and also acts as an online advertising intermediary," said Vestager.
"So Google is present at almost all levels of the supply chain for online display advertising.
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"We are concerned that Google has made it harder for rival online advertising services to compete in the so-called ad tech stack."
The probe will set out to look at all the stages in the ad supply chain and focus on Google's policies on user tracking to make sure they are in line with fair competition. And it seems the commission may already have a head start.
[5]Amazon notices Apple, Google cutting app store commission rates, follows suit
[6]Tim Cook: Sideloading is a disaster and proposed App Store reforms would harm user privacy and security
[7]Google ad biz shenanigans smacked down by French competition regulators
[8]Arriving in 2021, the UK's Digital Markets Unit 'could' start to do something about the power of online ad giants
Earlier this month [9]Google confirmed it planned to change the way it operates its advertising business after the internet giant was slapped with a €220m (£189m) fine by French competition regulators for abusing its dominant position.
Publishing the decision, the Autorité de la concurrence ruled that Google granted preferential treatment to its own proprietary technologies offered under the Google Ad Manager brand "to the detriment of its competitors and publishers," the French regulator said.
Last November, the UK government announced plans to set up a Digital Markets Unit (DMU) [10]to level the advertising playing field currently dominated by the likes of Google and Facebook although exactly how this might be achieved remains "fuzzy".
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When asked to comment on today's announcement, a spokesperson for Google said: "Thousands of European businesses use our advertising products to reach new customers and fund their websites every single day. They choose them because they're competitive and effective. We will continue to engage constructively with the European Commission to answer their questions and demonstrate the benefits of our products to European businesses and consumers." ®
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[1] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2YNJdgWFnq@FaPBkS8FTuBwAAAAg&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YNJdgWFnq@FaPBkS8FTuBwAAAAg&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YNJdgWFnq@FaPBkS8FTuBwAAAAg&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YNJdgWFnq@FaPBkS8FTuBwAAAAg&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[5] https://www.theregister.com/2021/06/18/amazon_appstore_commission/
[6] https://www.theregister.com/2021/06/17/tim_cook_interview_sideloading/
[7] https://www.theregister.com/2021/06/08/google_ad_biz_told_non/
[8] https://www.theregister.com/2020/11/27/uk_dmu/
[9] https://www.theregister.com/2021/06/08/google_ad_biz_told_non/
[10] https://www.theregister.com/2020/11/27/uk_dmu/
[11] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YNJdgWFnq@FaPBkS8FTuBwAAAAg&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[12] https://whitepapers.theregister.com/
Hmm, I think possibly a sternly worded letter from Google to a prestigious minister pointing out that it would be a shame if the world accidentally discovered the contents of the minister's searches and site history might swap the god-fear around a bit.
Not all bad
Step 1: Allow Google to monopolize Internet advertising
Step 2: Drop a MOAB on Mountain View
Result: No more Internet advertising
I call it a win.
Re: Not all bad
"Step 2: Drop a MOAB on Mountain View"
Why should YOU have all the fun
Its not as if Internet advertising was essential to life -- or even commerce
Internet advertising is a bit like selling an anti-elephant candle. You light this in your suburban home and voila!, no elephants. Sure, there are plenty of people who don't have one and don't seem to be plagued by them but they're running an awful risk. Realistically, its an expression of faith, a self-supporting pyramid of believers who suck advertising revenue because they are all True Believers, the sort that daren't even consider the possibility that their entire industry is a waste of resources.
I think that most of us would agree that the entire Internet advertising ecosystem is an infernal nuisance -- and that's being nice about it. It covers our web pages with crap, sucks the life out of our computers and provides ample opportunity for malware purveyors, all on the off chance that we might buy something that is vaguely related to a search we might have done a while back. Its not even real advertising -- actually finding a particular product to buy is often a nightmare of irrelevant search results from vendors of unknown or dubious provenance. Its why Jeff Bezos is rolling in it, it is not his fault that Amazon is one of only a handful of reliable vendors that can usually suggest products that you might use and then reliably deliver them.
I'd guess the reason for going after Google is the same reason people used to rob banks - its where the money is. Its so much easier to shake them down for a hundred million or two Euro than come up with a reliable and fair taxation scheme. There's plenty of others that want a piece of Google's business as well -- why spend big on R&D and facilities when you can get a court to effectively hand over a chunk.
although exactly how this might be achieved remains "fuzzy". ... I think a sternly worded letter from a suitably prestigious minister ought to put the fear of god up them
\s