Google against potential EU break-up order, says not proportionate (updated)

Criteo SA (Pre-Reincorporation)

08/12/2023 17:18

(Adds background from paragraph 5, more from Google in paras
4,9,10)
    By Foo Yun Chee
       BRUSSELS, Dec 8 (Reuters) - Alphabet's  GOOGL.O  Google
on Friday criticised a potential order from EU antitrust
regulators to sell part of its lucrative adtech business, saying
it was disproportionate and not right for its advertising
partners.
    The comments from Google's director Oliver Bethell and its
vice president for global ads Dan Taylor came after the U.S.
tech giant responded to EU charges issued to the company in
June.
    "We are opposed to divestment. We don't think that's the
right outcome for this case. We think this is a tremendously
efficient part of our business," Bethell told reporters.
    "And that kind of remedy would be disproportionate in the
circumstances and we have explained that to the Commission in
our response to their statement of objections," he said.
    The European Commission said Google has since 2014 abused
its dominance in the online advertising technology industry via
its market power on both sides of the supply chain. 
    It has done that, the Commission says, by ensuring that both
its intermediation tools on the buy-side and on the sell-side
would favour its own ad exchange AdX in the matching auctions.
    Taylor said it was common practice in the industry to serve
both advertisers and publishers, with a number of rivals doing
the same.
    "There are many firms that have competing adtech businesses
with us, Amazon  AMZN.O , Microsoft  MSFT.O , Criteo  CRTO.O ,
Comcast  CMCSA.O  and others," he told reporters.
    "They offer ad platforms and tools like ours that cater to
both advertisers and publishers. Now it is common to do this in
the industry because it benefits both advertisers and
publishers," Taylor said.
    "Integrated technology stacks will make it easier to provide
high quality connections that match the right advertiser to the
right ad slot on a publisher page."
    The stakes are higher for Google in this latest clash with
regulators as it concerns the company's biggest money maker,
with the advertising business accounting for 79% of total
revenue last year.
    Google can ask for a closed hearing to plead its case before
senior EU and national antitrust officials before a ruling is
issued, which could come next year.

 
    

 (Reporting by Foo Yun Chee, Editing by Louise Heavens, Kirsten
Donovan)
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