EU Break-up Order Faces Criticism from Google

BRUSSELS: Alphabet’s Google on Friday criticized a potential order by EU antitrust regulators to sell part of its lucrative ad technology business, saying it was disproportionate and not right for its advertising partners.

The comments by Google CEO Oliver Bethell and its vice president of global advertising Dan Taylor came after the US tech giant responded to EU charges brought against the company in June.

“We oppose the sale. We don’t think it’s the right outcome for this case. We think this is a very efficient part of our business,” Bethell told reporters.

“And such a remedy would be disproportionate in the circumstances and we have explained that to the commission in our response to their statement of objections,” he said.

The European Commission said that since 2014, Google has abused its dominant position in the online advertising technology industry through its market power on both sides of the supply chain.

It has done so, according to the commission, by ensuring that both its buy-side and sell-side brokerage tools favor its own AdX in the respective auctions.

Taylor said it’s common practice in the industry to serve both advertisers and publishers, and many competitors do the same.

“There are many companies that have competing adtech businesses with us, Amazon, Microsoft, Criteo, Comcast and others,” he told reporters.

“They offer ad platforms and tools like ours that serve both advertisers and publishers. Now this is common in the industry because it benefits both advertisers and publishers,” Taylor said.

“Integrated technology stacks make it easy to deliver high-quality connections that match the right advertiser to the right ad slot on the publisher page.”

The stakes are higher for Google in this latest clash with regulators, as it involves the company’s biggest moneymaker. Advertising accounted for 79 percent of last year’s total revenue.

Google may request a closed hearing to plead its case to senior EU and national competition authorities before a decision is made, which could come next year.