Jakarta, Indonesia Sentinel — Google is facing mounting pressure from the European Union (EU) regarding its antitrust case, leading the tech giant to offer its advertising marketplace unit, AdX, for sale. However, European publishers have reportedly rejected this proposal, arguing that simply selling AdX does not adequately address the underlying issues.
The EU’s scrutiny of Google’s advertising technology business began last year after complaints from the European Publishers Council highlighted concerns about Google’s ad model.
The European Commission has accused Google of engaging in various tactics to maintain its dominance in the digital advertising industry, marking this as the fourth antitrust case the Commission has brought against the company.
Historically, Google has never offered to sell any of its business assets when facing antitrust cases, according to three attorneys involved in the situation. Alongside the EU’s actions, Google is also contending with similar legal challenges in the U.S., where regulators are pushing for the sale of Google Ad Manager—an umbrella service that includes AdX—and the Google Publisher ad server, known as DFP.
Publishers have expressed dissatisfaction with Google’s proposal, insisting that divestment should encompass more than just the AdX marketplace. They argue that Google’s dominance extends across every level of the digital advertising supply chain.
A spokesperson for Google stated, “As we have previously indicated, the case brought by the European Commission concerning our third-party ad products is a misinterpretation of the advertising technology sector. This industry is highly competitive and continuously evolving, and we are committed to remaining in this business.”
The European Commission has refrained from commenting on the matter, and the European Publishers Council has not responded to requests for confirmation.
AdX, or Ad Exchange, is a marketplace that allows publishers to create ad space available for real-time purchases by advertisers. In the past year, EU antitrust chief Margrethe Vestager proposed that Google divest its DFP and AdX tools to resolve the conflict of interest.
However, the Commission appears to be focusing on compelling Google to cease anti-competitive practices instead of enforcing immediate divestiture.
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In 2023, Google generated approximately $237.85 billion in ad revenue from its various services, contributing to 77% of its total earnings, solidifying its position as the world’s most powerful digital advertising platform.
(Ray)
