Exclusive-Google proposes to investigate EU no-confidence in digital advertising

Reuters File Photo: May 8, 2019, has a picture of a sign outside a Google office near the company’s headquarters in Mountain View, California, USA. Reuters / Paresh Dave / File photo

By Fu Yun Chi

BRUSSELS (Reuters) – Alphabet unit Google (Nasdaq 🙂 is seeking to settle an EU no-confidence inquiry into its digital advertising business, a source familiar with the matter said, a move that could help it undergo a disruptive, lengthy investigation and close a possibility. Maybe a hefty fine

Google has been fined more than 8 billion euros (9. 9.4 billion) in three separate cases over the past decade for EU distrust, and has been instructed to change its business practices to allow competitors to compete.

The European Commission launched an investigation in June into whether Google favored its own online display advertising technology service to the detriment of competitors, advertisers and online publishers.

Google has made a proposal to the commission, the person said, refusing to provide details due to the sensitivity of the matter.

The commission, which acts as a competition enforcer for the 2-country bloc, declined to comment.

Google, which will face the appellant in a 5-day court hearing next week on a 3 4.34 billion fine related to its Android mobile operating system, did not respond to a Reuters request for comment.

It remains to be seen whether European antitrust chief Margaret Vesteger will be open to negotiations that usually take months or even years before an agreement can be reached, or they may be suspended in the meantime.

He has opted for sanctions rather than negotiations to resolve his last three Google cases. No penalty and injustice can be found in the decision of a settlement.

Google could face fines of up to% 18.2 billion for up to 10% of its global transactions based on last year’s revenue if found guilty of violating EU no-confidence rules.

Regulators will check to see if Google restricts third-party access to user data for advertising purposes on websites and apps, while retaining such information for its own use.

The company’s plans to remove browser cookies and stop tracking Android users through a tool known as ad identifier will also come under scrutiny.

Last year, Google earned 7 147 billion from online advertising, more than any other company in the world, with ads, including Search, YouTube and Gmail, accounting for the bulk of its overall sales and profits.

About 16% of its revenue comes from the company’s display or network business, where other media companies use Google technology to sell ads on their websites and apps.

Research firm Emarketer estimates that Google will occupy 30% of the global Internet advertising market this year and increase sales by 18% to 7 117 billion.

The lawsuit, filed by several private companies against the state and federal governments as well as Google, is not expected to start for at least another two years.

Google recently decided to settle another ad search. In June, it promised to work closely with UK competition and market authorities on the company’s plans to remove tracking cookies from the Chrome browser as the move raised concerns of distrust from the advertising industry.

The regulator is currently considering whether to accept Google’s discount.

The United States and the EU want to work more closely on Big Tech control at a summit next week.

(1 = 0.8531 euros)

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