Google has said it will make changes to its global advertising business to avoid abusing its control by succumbing for the first time to antitrust pressure in a groundbreaking reconciliation with French authorities. The contracts with the French competition monitoring authorities rebalanced the power over advertising in favor of publishers who dominated business in the pre-internet age but lost control due to the rapid rise of Google and Facebook. Can be useful for.
The settlement, which included a â¬ 220 million ($ 268 million) fine announced on Monday, was the first time a U.S. tech giant has agreed to make changes to advertising business, which is making the most of it. part of his income. “The decision to sanction Google is particularly important because it is the first decision in the world to focus on the complex algorithmic auction process on which the online advertising industry relies,” said the French antitrust. Isabelle de Silva, the lawyer, said.
According to advertising media companies and Google’s competitors, the French regulation alone may not have a significant impact on the industry’s market share. However, they hope this will trigger similar antitrust proceedings in the United States and other jurisdictions. âThis decision is an important step in revitalizing competition and innovation in advertising technology. Publishers, who are the main victims of Google’s practice, will eventually profit, but the battle is just beginning. âSmart CEO, who provides advertising technology to publishers.
The French proceedings, for example, do not mention that Google controls the dominant search properties and YouTube to thwart the competition. It also doesn’t mention the privacy restrictions that Google is introducing on the web that could benefit your business at the expense of your competition. Instead, Watchdog focused on the relationship between Google Ad Manager, which publishers use to auction ad space, and Google AdX, one of the many marketplaces where they can manage auctions. According to authorities, Google has increased its market share by sharing strategic data on the two services and making them less fluid than competitor’s systems.
This privileged relationship has “deprived publishers” of taking advantage of the industry’s potential competition. Some changes are expected to take place by the first quarter of 2022, Google said. He added that he would not challenge this decision. A company has been added.
The successful advertising practices of tech giants based on the vast amount of data accumulated over the years has infuriated many publishers around the world. French antitrust authorities said the ruling paved the way for publishers who felt disadvantaged to seek damages from Google. Most of Google’s sales come from search ads and YouTube ads. But last year, around $ 23 billion was linked to publisher support for ad sales, antitrust investigations into Google’s business relationships, and some critics have called for the company to be disbanded. French Finance Minister Bruno Lemer welcomed Watchdog’s decision. “The practices Google has put in place to support its advertising technology have influenced news groups whose business models rely heavily on advertising revenue,” he said.
In response to complaints from News Corp, French publishing group Le Figaro and Belgian news group Rossel, the investigation began in 2019. News Corp signed a global information agreement with Google in February. With Big Technology This is one of the biggest transactions of its kind at Le Figaro. “We have not been involved in a lawsuit in France since we signed an agreement with Google in February, but we are a global partnership. We are happy and hopeful for our progress, for a long and fruitful relationship. for years to come, âa News Corp spokesperson said.
Le Figaro group declined to comment, but Rossell did not respond to the request for comment.
Google Changes Global Advertising Practices With Groundbreaking Antitrust Laws