Google said it would make changes to its global advertising business to avoid abusing its control by succumbing to antitrust pressure for the first time in a groundbreaking reconciliation with French authorities. Contracts with French competition watchdogs rebalanced power over advertising in favor of publishers who dominated business in the pre-Internet era but lost control due to the rapid rise of Google and Facebook. May be useful for.
The settlement, which included a € 220 million ($ 268 million) fine announced on Monday, was the first time a US tech giant agreed to make changes to the advertising business, which makes the most of its revenue. “The decision to sanction Google is especially important because it is the world’s first decision to focus on the complex algorithmic auction process on which the online advertising business relies,” said France’s antitrust. Isabelle de Silva, the lawyer, said.
According to advertising-backing media companies and Google’s competitors, the French settlement alone may not have a significant impact on the industry’s market share. However, they hope that this will trigger similar antitrust proceedings in the United States and other jurisdictions. “This decision is an important milestone in reinvigorating competition and innovation in the ad tech space. Publishers, who are the main victims of Google’s practice, will eventually benefit from it, but the battle is just beginning. ”Smart CEO, who provides ad tech to publishers.
The French proceedings, for example, do not mention that Google controls dominant search and YouTube properties to thwart competition. It also doesn’t mention the privacy restrictions that Google introduces on the Web that could benefit your company at the expense of your competitors. Instead, Watchdog focused on the relationship between Google Ad Manager, which publishers use to auction ad space, and Google AdX, one of several marketplaces where they can manage auctions. According to the authorities, Google has increased its market share by sharing strategic data on both services and making them not as smooth as competitors’ systems.
This privileged relationship has “deprived publishers” of profiting from potential competition in the industry. Some changes are expected to take place by the first quarter of 2022, Google said. He added that he would not challenge this decision. A company was added.
Successful tech giant advertising practices based on the vast amount of data accumulated over the years have infuriated many publishers around the world. French antitrust officials said the decision paved the way for publishers who felt disadvantaged to seek damages from Google. Most of Google’s sales come from search ads and YouTube ads. But last year, about $ 23 billion was tied to publisher support for advertising sales, antitrust investigations into Google’s business connections, and some critics called for the company to disband. French Finance Minister Bruno Lemer welcomed Watchdog’s decision. “The practices Google has implemented to support its advertising technology have influenced press groups whose business models rely heavily on advertising revenue,” he said.
In response to complaints from News Corp, French news publishing group Le Figaro and Belgian press group Rossel, the investigation began in 2019. News Corp signed a global news agreement with Google in February. With Big Technology It is one of the largest transactions of its kind in Le Figaro. “We have not been involved in a lawsuit in France since we signed a deal with Google in February, but we are a global partnership. We are pleased and hopeful for our progress, for a long and fruitful relationship over the years to come, “said a News Corp. spokeswoman.
Group Le Figaro declined to comment, but Rossell did not respond to the request for comment.
Google changes global advertising practices with groundbreaking antitrust laws
Source link Google changes global advertising practices with groundbreaking antitrust laws