Google's core business was fined by regulators with a maximum penalty of 10% of total revenue.?
According to media reports, Google may face fines from EU antitrust authorities as soon as this week, and regulators may require Google to sell some of its ad technology business。
According to media reports, Google may face fines from EU antitrust authorities as soon as this week, and regulators may require Google to sell some of its ad technology business。
Beat the snake hit seven inches, the EU this time to Google's profit core - advertising business。Google's revenue in 2022 was about $224.5 billion, and nearly 80% of that was contributed by advertising.。
In the EU, Google and other major tech companies must comply with the Digital Markets Act and the accompanying law, the Digital Services Act.。This is the newly enacted law on the promotion of competition, the maximum penalty for violations up to 10% of the company's global revenue。The new law aims to enhance competition by prohibiting large tech companies from favoring their own products and services over those of third parties, and calls for greater transparency.。
According to research firm Insider Intelligence, Google is the world's dominant digital advertising platform, with a 28% market share of global advertising revenue.。Google parent Alphabet's advertising sales fell to 545 in the first quarter from a year earlier..$500 million, but still better than analysts expected。During this period, Alphabet's total revenue was 697.900 million dollars。
The EU has raised concerns about Google's dominance in advertising and launched its first investigation into Google's ad technology practices in 2021.。EU regulators have questioned the legitimacy of Google's online advertising business, which controls much of the technology used to shop, sell and serve ads online.。In September 2022, the Portuguese competition authority submitted new evidence, and the scope of the investigation was subsequently expanded, with the EU launching an investigation into almost all aspects of Google's online display advertising supply chain.。
It is reported that Google will be suspected of blocking competitors access to online advertising user data, as well as suspected of setting up fences for their own data use。The European Union's top antitrust regulator could file a formal complaint against Google as early as Wednesday, further undermining the tech giant's dominance in digital advertising, sources said.。
Before the latest EU law came into effect, the EU had imposed a huge antitrust fine on Google。From 2017 to 2019, EU regulators imposed heavy fines on Google at an annual rate.。
In June 2017, the European Commission announced that Google was fined 24% for violating EU competition regulations..200 million euros。The European Commission says Google's entry into the shopping comparison market has used its dominance in online search to manipulate search results and unfairly direct customers to its own shopping services。
In 2018, EU antitrust enforcement authorities slapped Google with a record 43.The €400 million fine is equivalent to about 4% of Google's parent company Alphabet's turnover in 2017.。The reason is that Google uses the Android operating system to impose illegal restrictions on mobile device manufacturers and mobile network operators.。Google appealed, then reduced the fine slightly to about €4.1 billion, and now Google has appealed the case to the Supreme Court.。
In 2019, the European Commission imposed another €1.5 billion fine on Google for engaging in unfair competition and blocking its rival's online search ads.。The European Union says Google has reinforced its dominance by adding restrictive clauses to its contracts with third parties。
The amount of these three fines alone has exceeded 8 billion euros, and Google has suffered heavy losses in the EU.。
But the EU antitrust agency is not the only one to launch an antitrust investigation into Google's advertising business.。
Since Google has long held a key position in the space, the company is able to collect data that enables advertisers to target ads and promote them, and also provides technology that allows advertisers to find publishers to promote.。As a result, Google's dominance of online advertising has been increasingly questioned over the past few years.。Complaints from competitors about their alleged anti-competitive practices have led to antitrust investigations into their practices in several countries and regions。
In January, the U.S. Department of Justice and eight U.S. states filed a lawsuit saying Google illegally used its monopoly in the $278.6 billion online advertising market to block competitors from entering.。Nine more states have since joined the suit.。
In the dispute over Google's advertising business, the U.S. Department of Justice asked the court to order Google to divest certain ad technology entities, notably its Ad Manager suite, which includes its publisher ad server DFT (also known as DoubleClick or GAM) and its ad trading platform AdX.。But Google has denied any wrongdoing and an investigation is ongoing.。The U.S. Department of Justice also accused Google of illegally monopolizing the online search business in a separate lawsuit filed against the company in 2021.。
In addition, the UK competition agency has been investigating Google's advertising technology practices.。
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