Google offers EU to change adtech policy, no divestment, Pg 25

Key Highlights:

• Google has proposed changes to its adtech policy to the EU, avoiding the need to divest part of its business.
• The European Commission fined Google 2.95 billion euros in September for favoring its own online display technology services.
• Google's proposal aims to address concerns raised by the EU regarding conflicts of interest in the adtech supply chain.
• The proposed changes include giving publishers the option to set different minimum prices for different bidders when using Google Ad Manager.

Detailed Insights:

• The EU competition watchdog is targeting Google's ownership of tools used by advertisers and publishers, along with its AdX ad exchange.
• Google's proposal to the EU is similar to the one offered in the US Department of Justice investigation on the same issue.
• The European Commission suggested that Google sell part of its business to address conflicts of interest, but Google is resisting this.
• Google argues that a disruptive break-up would harm the thousands of European publishers and advertisers who use Google tools.
• The company has offered to increase the interoperability of its tools to give publishers and advertisers more choice and flexibility.
• The EU enforcer could issue a breakup order at a later stage if Google continues anti-competitive practices.
• The US Department of Justice also wants Google to sell AdX, and the case is currently before a US court.

Key Concepts Involved:

• Adtech: Technologies and software used to automate the buying, selling, and management of digital advertising.
• Antitrust: Laws and regulations that promote fair competition in the marketplace by preventing monopolies and anti-competitive practices.
• Interoperability: The ability of different systems and software to exchange and use information.