By year end, Google adtech business will be subjected to an EU investigation, according to report

According to sources familiar with the situation, Alphabet unit Google might face its greatest regulatory threat yet, with European Union (EU) antitrust officials poised to begin a formal probe into its profitable digital advertising business before the end of the year.

It would be a new battleground for the EU’s antitrust regulator against Google. It penalised the firm more than 8 billion euros ($9.8 billion) in the last decade for restricting competitors in online shopping, Android smartphones, and online advertising.

One of the sources said an EU investigation would focus on Google’s position in relation to advertising, publishers, intermediaries, and competitors, implying a more thorough investigation than the French antitrust agency’s inquiry, which ended last week.

Last year, Google generated $147 billion in income from internet advertisements, more than any other corporation on the planet. The majority of revenues and earnings came from ads on its assets, which included search, YouTube, and Gmail.

The display or network sector, in which other media businesses use Google technology to sell advertising on their websites and applications, accounted for around 16 percent of income.

A new EU investigation might wind up focusing on Google’s whole advertising enterprise. According to market research firm eMarketer, Google will dominate 27% of worldwide online ad expenditure this year, including 57% of search advertisements and 10% of display ads.

While the figures may not appear to be monopolistic at first glance, advertisers and competitors argue that Google’s different software is involved in so many aspects of the industry that it is difficult to ignore the business.

NEWS SOURCE

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