The European Union may require Alphabet Inc.'s Google to sell a portion of its advertising technology business to curb its dominant position in the digital advertising market.
The European Commission, the EU's top antitrust watchdog, could file formal complaints against Google as early as Wednesday, furthering efforts to diminish the tech giant's dominance in digital ads.
Google holds the largest market share of global ad revenue, generating $54.55 billion in ad sales in the first quarter alone.
European Union Takes Action Against Google's Dominance in the Digital Advertising Market.
The European Union explores measures to restrict Google's advertising technology business; Image: Global Competition Review
According to a source with direct knowledge of the matter, the European Union is considering demanding that Google divests a part of its advertising technology business. This move is part of the EU's efforts to curb the tech giant's dominant position in the digital advertising market.
The European Commission, the EU's top competition authority, reportedly plans to file formal complaints against Google as early as this week. The EU has expressed concerns about Google's extensive presence across almost all levels of the online display advertising supply chain.
Orders to break up companies from the EU competition enforcer are rare. However, frustration has mounted as Google failed to address competition concerns.
Google is the world's most dominant digital advertising platform, holding a 28% market share of global ad revenue, according to research firm Insider Intelligence.
Google's dominance in online advertising has faced increasing scrutiny in recent years. Complaints from rivals about allegedly anti-competitive practices have prompted antitrust investigations on multiple continents.
Earlier this year, the United States filed an ad tech lawsuit against Google, demanding the divestment of its ad manager suite. The lawsuit argued that the search giant illegally abused its dominance in online advertising. Google has denied any wrongdoing.
