Google offers to let rival ad companies place YouTube ads to settle EU antitrust probe
• YouTube remedy can help Google settle EU case without penalty, which could reach 10% of its global turnover
• UK is also probing into ad practices, and US introduced bill to force Big Techs to break up its online-ad dominance
Google’s parent company Alphabet Inc (NASDAQ: GOOGL), has offered rival digital advertising intermediaries to place ads on YouTube to address a critical part of an EU antitrust probe, Reuters reported on Monday, citing people familiar with the matter.
Last year the European Commission opened an investigation to examine whether the search giant uses Google Ad Manager to serve online display ads on YouTube, its video streaming platform, and giving itself an unfair advantage in digital advertising by restricting rivals’ and advertisers’ access to user data.
Google, which has previously said publishers and advertisers often use multiple technologies and platforms to sell ads, has been discussing remedies with the Commission since last year, the report said.
The move will help the search giant to settle the case without a penalty, which could reach 10% of its global turnover.
Last year, Google generated $147 billion in revenue from digital advertisements, more than any other company worldwide. YouTube posted revenue of $6.9 billion in the first quarter of this year.
However, Google will need to offer more than just the YouTube remedy to address other concerns to get a deal, Reuters reported citing sources who also said that the talks seemed to be on the right track.
UK’s competition agency CMA is also investigating Google’s ad practices.
A bipartisan group of US senators has also introduced legislation last May that aims at conflicts of interest in the advertising technology industry and, if passed, would force the Big Techs to break up its dominant online-ad business.
Picture Credit: Search Engine Land
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