The European Union has filed a formal antitrust complaint against Google, which could result in new fines and may impact the advertising technology that drives most of the company’s revenue. Bloomberg reports that the EU is likely to issue a statement of objections on Wednesday, marking a new escalation of antitrust complaints against the search giant. The EU antitrust watchdog has already levied penalties of over €8 billion on the US-based multinational corporation.
The new charges against Google will target the company’s ad tech business model, the core of Alphabet Inc.’s unit, according to anonymous insiders. Google’s advertising business accounts for around 80% of its annual revenue, bringing in about $225 billion in 2022, as reported by Bloomberg. Under EU rules, companies can receive a fine of up to 10% of their global sales for violating antitrust norms. Companies have the right to defend themselves both before and after they are fined.
In 2021, the European Commission began a probe into Google’s ad tech practices to scrutinize whether the company obstructed rivals’ access to user data for online advertising. The commission is also investigating whether Google may have ring-fenced this data for its own use.
Initially, the EU’s investigation included Google and Meta Platforms’ Open Bidding program, but this was later dropped in 2022. However, the investigation was broadened after the Portuguese competition authority provided new evidence in September 2022.
Google is also facing an antitrust probe in the UK over its ad tech practices, and is involved in litigation over its behavior in the US. The company is continuing to contest its EU antitrust fines in court, including a landmark €4.34 billion penalty for how it runs its Android mobile operating system.