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Google plans AdTech changes to meet EU regulators, while improving fairness for publishers and advertisers.
Alphabet's Google has filed a proposal to the European Commission to solve concerns about antitrust over its online advertising technology, to maintain control over its ad ecosystem while pleasing regulators. In order to solve disputes between its tools for publishers and advertising, the EU had suggested that Google consider selling a portion of its business. Regulators in the US and Europe are focusing on Google's Ad Exchange (AdX), an important center for digital advertising, and its ad technology. Google was given a deadline to offer solutions after the European Commission fined the business €2.95 billion ($3.4 billion) in September for preferring its own services.
Google's approach is similar to how it handled a similar issue in a U.S. Department of Justice inquiry. In a blog post, Google said, "Our proposal completely addresses the EC's decision without a costly separation that could negatively impact thousands of European publishers and advertisers." Important steps involve improving tool compatibility to give publishers and advertisers additional options and allowing publishers to create different minimum prices for various bidders in Google Ad Manager.
Citing a Microsoft instance from 20 years ago, sources point out that the European Commission may still order the division if unfair behaviors continue. The case is currently under review by a federal court in the United States, and the conclusion may have an impact on the EU's further actions. A more decentralized ecosystem where AI-based markets independently control bids and prices may be supported by authorities, changing AdTech in the future.
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