Google's Adtech Business To Undergo Stringent EU Antitrust Probe

The E.U. antitrust regulators are set to open an investigation into Alphabet Inc's GOOGL GOOG subsidiary Google's digital advertising practices, Reuters reported.
The regulators are expected to open the investigation by the end of 2021.
The E.U. competition watchdog has fined the company more than $9.8 billion for blocking rivals in online shopping in the last decade.
Last week, France settled with Google for $268 million and various commitments over allegations related to the network business.
European Union Competition Commissioner Margrethe Vestager has said that Google faces an "extensive investigation" into its advertising business, adding a new front to a decade-long antitrust battle, Bloomberg reported.
The E.U. has been examining Google's data practices since 2019 and has widened the scope to look at Google's plans to phase out third-party cookies, the report says.
The investigation would focus on Google's position vis-a-vis advertisers, publishers, intermediaries, and rivals.
In 2020, the U.S. Justice Department also sued Google for abusing its dominance in search ads.
A group of states led by Texas has filed a lawsuit focused on anti-competitive behavior on the network side of the company.
According to the market researcher eMarketer, Google will control 27% of global online ad spending in 2021, including 57% for search ads and 10% for display.
Google has made $147 billion in revenue from online ads in 2020, more than any other company in the world. About 16% of the revenue came from its display or network business.
Advertisers and rivals have claimed that dependence on Google gives the company an unfair advantage, which allows the company to extract high fees from all sides and block rivals.
Price Action: GOOG shares closed 0.64% lower at $2,511.35 on Friday.

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