Adtech bias: Google faces EU antitrust probe

The European Commission has informed Google of its preliminary view that the company breached EU antitrust rules by distorting competition in the advertising technology industry (‘adtech'). The Commission takes issue with Google favouring its own online display advertising technology services to the detriment of competing providers of advertising technology services, advertisers and online publishers.

Google is a US multinational technology company. Google's flagship service is its search engine Google Search. Google also operates other popular services, such as the video streaming platform YouTube or the mobile operating system Android. Google's main source of revenue is online advertising: (i) it sells advertising space on its own websites and apps; and (ii) it intermediates between advertisers that want to place their ads online and publishers (i.e. third-party websites and apps) that can supply such space.

Advertisers and publishers rely on the adtech industry's digital tools for the placement of real time ads not linked to a search query, such as banner ads in websites of newspapers (‘display ads'). In particular, the adtech industry provides three digital tools: (i) publisher ad servers used by publishers to manage the advertising space on their websites and apps; (ii) ad buying tools used by advertisers to manage their automated advertising campaigns; and (iii) ad exchanges where publishers and advertisers meet in real time, typically via auctions, to buy and sell display adds.

Google provides several adtech services that intermediate between advertisers and publishers in order to display ads on web sites or mobile apps. It operates (i) two ad buying tools - “Google Ads” and “DV 360”; (ii) a publisher ad server, “DoubleClick For Publishers, or DFP”; and (iii) an ad exchange, “AdX”.