The European Union will not require Google to divest its advertising services and will only impose a light fine. This indicates that Europe intends to take a less strict approach against Big Tech.
The European Union is not planning to severely punish Google for its advertising monopoly, according to Reuters. In 2021, the Commission launched an investigation into possible abuse of power by Google with its advertising services. Google is the global market leader in digital advertising, which accounts for three-quarters of the company’s total revenue.
In recent years, the Commission has repeatedly reprimanded Google for allegedly prioritizing its own ads over competing services through its search engine. This leaves only a few crumbs for alternatives from the pie that Google greedily devours. Two years ago, then-Commissioner Margrethe Vestager wanted Google to divest its lucrative advertising unit.
According to Reuters, it won’t go that far. Google will also get away with a ‘light’ fine, without specifying an amount.
Softer Approach
New bosses, new rules, it seems at the Commission. Now Teresa Ribera (PSOE, Spain) has the final say in European antitrust matters. Ribera appears to advocate for a different approach than Vestager. The Spanish commissioner doesn’t believe that wielding the penalty stick is the best way to bring tech giants to their senses. Under the current legislature, the EU seems to be opting for a softer approach, which will also help avoid clashing with the U.S. government.
Google won’t mind. Under the previous administration, the tech giant was hit with multiple billion-euro fines for anti-competitive practices. The heaviest was in 2018 for Android and amounted to 4.3 billion euros. These fines haven’t changed Google’s practices, so it’s unclear how the Commission intends to force changes.
While Google may escape a heavy European sanction, it’s still under scrutiny in its home country. A historic antitrust case against Google is ongoing in the United States. A forced sale of the Chrome browser is just one of the proposals on the table. Google won’t accept this so easily.
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