EU proposes breaking up Google over anti-competition concerns

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In a preliminary report into Google's alleged anti-competitive practices, the European Union says it believes breaking up the company could be essential.




The European Commission has been investigating Google's ad business, and specifically its market dominance, since 2021. Following its preliminary report, the EU has now sent Google a statement of objections.

"The Commission preliminarily finds that, in this particular case, a behavioural remedy is likely to be ineffective to prevent the risk that Google continues such self-preferencing conducts or engages in new ones," says the EU Commission in a statement

In other words, the EU does believe that Google's advertising business is anti-competitive -- and that Google will not voluntarily change that.

"The Commission's preliminary view is therefore that only the mandatory divestment by Google of part of its services would address its competition concerns," continues the statement.

"Google has a very strong market position in the online advertising technology sector," says Margrethe Vestager, the EU's Executive Vice-President in charge of competition policy. "It collects users' data, it sells advertising space, and it acts as an online advertising intermediary."

"So Google is present at almost all levels of the so-called adtech supply chain," she continued. "Our preliminary concern is that Google may have used its market position to favour its own intermediation services."

"Not only did this possibly harm Google's competitors but also publishers' interests, while also increasing advertisers' costs," said Vestager. "If confirmed, Google's practices would be illegal under our competition rules."

Vestager and the European Commission are careful to state that the investigation's conclusions are preliminary. Google now has the opportunity to respond to the statement of objections, and there will be a hearing to discuss those.

There is not as yet, though, a specific schedule for what can happen after that. If it finds Google guilty of anticompetitive practices, the EU can fine the company up to 10% of its global sales -- or potentially force it to be broken up.

If Google is to be fined, it's far from the first time the EU has done so.

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Comments

  • Reply 1 of 21
    ionicleionicle Posts: 98member
    Im not fond of the EU (being English) but on this occasion at-least they are using their overbearing, overreaching, excessive powers for a good use (not usually the case)…

    williamlondonwatto_cobra
  • Reply 2 of 21
    Hey Google... Go... Go Now.

    Ok, so I have a downer on Google but if you saw the logs of the hack attempts on an almost daily basis originating from Google controlled IP addresses. Do they do anything about it? Do pigs fly? 
    Their attacks include trying to scan every page on my sites. I have the robots.txt but they simply don't care. All they care is suck, suck, slurp, and suck.
    I have blocked every Google IP address but they keep on registering new ones (according to whois)

    williamlondonFileMakerFellerwatto_cobraappleinsideruserAlex1N
  • Reply 3 of 21
    radarthekatradarthekat Posts: 3,896moderator
    In related news, Google is considering breaking up the EU.  /s 😛
    rob53byronlFileMakerFellerwatto_cobraappleinsideruserpscooter63
  • Reply 4 of 21
    jfabula1jfabula1 Posts: 152member
    Ah EU….sorry but Google is not EU company you can bully. Yes you can tax them the right way but ad is their business. If businesses are really hurting then dont advertise on their platform. Simple enough.
    williamlondonentropysFileMakerFellerwatto_cobra
  • Reply 5 of 21
    Next up, Luxotica!
    nubuscitpeks
  • Reply 6 of 21
    danoxdanox Posts: 3,240member
    JP234 said:
    To everyone celebrating this EU overreach against Google, your favorite company is next in the barrel. Careful what you wish for, won't you?
    Parasites there is nothing good about Google or Meta, and regional devices from Apple are still coming to the EU.
    ronnwatto_cobra
  • Reply 7 of 21
    croprcropr Posts: 1,140member
    jfabula1 said:
    Ah EU….sorry but Google is not EU company you can bully. Yes you can tax them the right way but ad is their business. If businesses are really hurting then dont advertise on their platform. Simple enough.
    Taxing is not the concern of the European Commission (it are the member states who set up and collect taxes).  The EU commission is primarily concerned about a fair competitive playing field in the EU.  Whatever company that has too much market power in the EU in one domain and abuses this power in another domain, is under the scrutiny of the European Commission.    It appears that Google is abusing its market dominance in the technical ad sales business and the EU is reacting accordingly.    I cannot judge whether this is correct or not, but Google got already 3 times a fine for the abuse of its market dominance, so this is not a complete surprise.       Any EU, American, Chinese, Indian or British (yes they left the EU) company that wants to do business in the EU must comply with the EU rules of fair competition
    sphericronnwilliamlondonFileMakerFellerAlex1N
  • Reply 8 of 21
    MadbumMadbum Posts: 536member
    Who still doesn’t thinks Europe is just as big of an enemy for USA as China is? Hell, unlike China,we basically support Europe with billions with welfare for these European maggots and they still do this to our companies 
    williamlondonentropys
  • Reply 9 of 21
    gilly33gilly33 Posts: 444member
    jfabula1 said:
    Ah EU….sorry but Google is not EU company you can bully. Yes you can tax them the right way but ad is their business. If businesses are really hurting then dont advertise on their platform. Simple enough.
     Yep, but they do trade here. Refusing to comply can come with sanctions, such as preventing doing business here. (I say here even though I am in the UK as we are essentially a vassal state where their laws massively impact us and ours just destroy our economy even further).  

    Secondly, the EU passing such legislation makes it a hell of a lot easier for the US to do the same as somebody has already done the ground work for you. 

    The good news is it won’t stop at Google. MS, Meta and Apple will be next. Time to get back to the good ol’ days of proper innovation!
    I’m in agreement with you. Government overreach all in the name of protecting consumers. 
    williamlondon
  • Reply 10 of 21
    gprovidagprovida Posts: 259member
    These regulatory actions almost never get the outcomes they expect or desire. Compound this the apparent focus by EU on US tech companies who have been very successful leads to the conclusion that the decision making is intended to punish these companies in favor of EU companies.  EU companies failure to compete is more related to regular story, legal, and investor reward obstacles only weakly related to competition.  

    Note there are similar pressures in US punishing very successful companies, but generally these are not as effective. An example is the US sadly legislative resistance to privacy primarily as a profit/revenue driven lobby efforts as well as legal overreach regarding encryption. 
    Madbumwilliamlondongatorguywatto_cobra
  • Reply 11 of 21
    danoxdanox Posts: 3,240member
    JP234 said:
    danox said:
    JP234 said:
    To everyone celebrating this EU overreach against Google, your favorite company is next in the barrel. Careful what you wish for, won't you?
    Parasites there is nothing good about Google or Meta, and regional devices from Apple are still coming to the EU.
    I don't find any value in Google or Meta either, but that doesn't mean Apple ain't next. Whenever any corporation has a pile of cash, all governments think they're entitled to "wet their beaks" in it. And there's no one with a bigger pile of cash than Apple. If there is, they'll be a target, too.
    Well, in this new climate, Apple Vision Pro isn’t coming to the EU in 2023, I don’t think that’s a coincidence by Apple, imagine if Apple did introduced Apple Vision in 2023, the EU would immediately target it, and tell Apple give a free ride to Spotify.

    One European company however, is leading the charge. 

    Djay a popular DJing app, has already extended its iPad app into VisionOS and said the development process was seamless. 

    https://developer.apple.com/news/?id=h3qjwosp

    edited June 2023 JP234watto_cobraAlex1N
  • Reply 12 of 21
    jbdragonjbdragon Posts: 2,312member
    JP234 said:
    To everyone celebrating this EU overreach against Google, your favorite company is next in the barrel. Careful what you wish for, won't you?
    Exacxly!!!  I don't see the Issue.  It's Google's services and so they should have every right to promote their services above others.  If you don't like it, Ignore the Google stuff and that includes Google Search.  There is BING and DuckDuckGo for example.   I know the EU government thinks everyone there is a complete idiot and need to be lead around on a leash because you can't think for yourself.  That you all are really dumb.  That you need the Government to tell you want to do, or force companies to do dumb things.  Most of the time it's just another huge fine on an American company to bring in more money for the Government.  I hate having to defend Google!!!!  The EU just treats all its citizens as dumb children.   That is a fact. They are on a power trip.
    watto_cobra
  • Reply 13 of 21
    chutzpahchutzpah Posts: 392member
    danox said:
    JP234 said:
    danox said:
    JP234 said:
    To everyone celebrating this EU overreach against Google, your favorite company is next in the barrel. Careful what you wish for, won't you?
    Parasites there is nothing good about Google or Meta, and regional devices from Apple are still coming to the EU.
    I don't find any value in Google or Meta either, but that doesn't mean Apple ain't next. Whenever any corporation has a pile of cash, all governments think they're entitled to "wet their beaks" in it. And there's no one with a bigger pile of cash than Apple. If there is, they'll be a target, too.
    Well, in this new climate, Apple Vision Pro isn’t coming to the EU in 2023, I don’t think that’s a coincidence by Apple, imagine if Apple did introduced Apple Vision in 2023, the EU would immediately target it, and tell Apple give a free ride to Spotify.
    The Vision Pro isn’t coming to anywhere in 2023.  But don’t let that get in the way of a good rant.
    edited June 2023 muthuk_vanalingamronnwilliamlondonFileMakerFellerbeowulfschmidtAlex1N
  • Reply 14 of 21
    nubusnubus Posts: 571member
    When Microsoft bundled their browser with Windows and destroyed the market for browsers it killed innovation for years and made a lot of site unavailable to Mac users. We all benefit from US FTC splitting browsers from Windows. Using market dominance of operating systems to kill competition in browsers was not OK.

    The US public elected politicians that created rules to protect companies from being steamrolled by monopolies (votes 51-1, 242-0). Those rules stayed under Trump.

    In Europe we have done the exact same thing. We elected politicians directly to the EU parliament and to local parliaments. Together they agreed to the same rules as in the US. Just as in the US we don't want a company to use their size in one area to kill innovation in another area.
    ronnsphericFileMakerFellerAlex1N
  • Reply 15 of 21
    sphericspheric Posts: 2,664member
    jbdragon said:
    JP234 said:
    To everyone celebrating this EU overreach against Google, your favorite company is next in the barrel. Careful what you wish for, won't you?
    Exacxly!!!  I don't see the Issue.  It's Google's services and so they should have every right to promote their services above others.  If you don't like it, Ignore the Google stuff and that includes Google Search.  
    The problem, jb, is that you CANNOT IGNORE THE GOOGLE STUFF if you want to do business anywhere in the world. 

    This is not about consumers having the option to ignore Google — this is about BUSINESSES that HAVE TO be accessible through Google if they want to do business AT ALL.

    There is nothing wrong with a search platform charging your business for visibility. There IS something wrong with the company that has established a monopoly in search and visibility then suddenly ALSO establishing a business that directly competes with yours, and the search results favouring that. 

    That's just plain illegal — in the United States, as well. 
    ronnnubuschasmFileMakerFellerwatto_cobrapscooter63Alex1N
  • Reply 16 of 21
    entropysentropys Posts: 4,254member
    Madbum said:
    Who still doesn’t thinks Europe is just as big of an enemy for USA as China is? Hell, unlike China,we basically support Europe with billions with welfare for these European maggots and they still do this to our companies 
    I am not even a yank and I know this is true. 

    I work in the climate field, and when I was first involved and very young, even I could see the Kyoto protocol and the reference date being set at 1990 (when all those heavy polluting factories in previously eastern bloc but now part of the EU shut down), and the EU being allowed to operate as an umbrella of countries and no one else was allowed to band together, it was a surprising amount (and I mean a lot) about economic advantage for struggling 1990s Europe trying to nobble rapidly growing USA. 

    You could see that in how eager the EU was to get other countries to sign up regardless of how pathetic (or even nonexistent) their emissions targets were. It was all about pressuring the yanks to raise their targets.

    This thing about Google, and eventually every other successful and dominant US company, is just more of the same.
    FileMakerFellerwatto_cobraAlex1N
  • Reply 17 of 21
    chasmchasm Posts: 3,496member
    jfabula1 said:
    Ah EU….sorry but Google is not EU company you can bully. Yes you can tax them the right way but ad is their business. If businesses are really hurting then dont advertise on their platform. Simple enough.
    You really should have read at least the full article, if not the report itself.

    THE PROBLEM the EU are trying to address is that Google’s practices *eliminate* competition. So there ISN’T really another platform advertisers can just “go to” if (ha ha ha) their business practices are hurting publishers (like AppleInsider), users (yes, they are very materially hurting you by selling your data to scammers and bad state actors and more — hey, a buck is a buck), and the industry.

    Talk to anyone in management at AppleInsider or any other website you love and ask them about how Google’s diminishing ad commissions and lack of viable competition is squeezing the life out of content-oriented sites like this one. Be prepared to listen for quite a while, as they will have a LOT to say on this topic.

    Google is **abusing their monopoly,** plain and simple. Previous remedies have done zippity-doo-dah to get Google to be a fair competitor. There used to be a lot of other Apple-oriented news sites … now there’s barely a handful. There’s a reason why that is, and it’s spelled G-O-O-G-L-E.
    ronnFileMakerFellerwilliamlondonwatto_cobrasphericAlex1N
  • Reply 18 of 21
    chasm said:
    jfabula1 said:
    Ah EU….sorry but Google is not EU company you can bully. Yes you can tax them the right way but ad is their business. If businesses are really hurting then dont advertise on their platform. Simple enough.
    You really should have read at least the full article, if not the report itself.

    THE PROBLEM the EU are trying to address is that Google’s practices *eliminate* competition. So there ISN’T really another platform advertisers can just “go to” if (ha ha ha) their business practices are hurting publishers (like AppleInsider), users (yes, they are very materially hurting you by selling your data to scammers and bad state actors and more — hey, a buck is a buck), and the industry.

    Talk to anyone in management at AppleInsider or any other website you love and ask them about how Google’s diminishing ad commissions and lack of viable competition is squeezing the life out of content-oriented sites like this one. Be prepared to listen for quite a while, as they will have a LOT to say on this topic.

    Google is **abusing their monopoly,** plain and simple. Previous remedies have done zippity-doo-dah to get Google to be a fair competitor. There used to be a lot of other Apple-oriented news sites … now there’s barely a handful. There’s a reason why that is, and it’s spelled G-O-O-G-L-E.
    I think there is something to what you say, but I would also like to point out that when the supply of something grows to the point where it exceeds demand the price of that something will drop. For a VERY long time, the number of websites has been more or less infinite, which means that the price for advertising space on the web has plummeted. In the face of such abundant supply, any purchaser will want the highest quality; the costs are so low that even a premium price for the best available thing is negligible compared to the benefit gained.

    In a world of abundance, being the best is rewarded more handsomely than most of us can conceive, and not being the best is bringing fewer rewards than ever before. The competition is at an insanely high level. Those who can identify "the best" and make it available are going to be able to charge more for that service. Google were the first to successfully do it at internet scale; Amazon, facebook and Microsoft are also big players and there are a handful more further down the chain.

    It's very similar to the effect large retailers have had over the past hundred years or so, and the legality is murky but the economic effects are crystal clear: get big enough to garner attention and you will earn outsize profits.
    williamlondonmobirdwatto_cobraAlex1N
  • Reply 19 of 21
    chadbagchadbag Posts: 2,023member
    So, is the following description of the problem valid?

    Google controls the search so it controls the showing of ads (inside search).  Google controls the actual ad company.   Google controls the intermediary who is supposed to broker the ads and their placement.   So Google control all the various pieces that have to talk to each other , and they also control the data associated with use of the ads.   So there is no real competition.  


    Sound like the old company store/company town. You get a job and have to live in company sold/leased housing and you have to shop in company supplied stores.   


    ronnAlex1N
  • Reply 20 of 21
    danoxdanox Posts: 3,240member
    chadbag said:
    So, is the following description of the problem valid?

    Google controls the search so it controls the showing of ads (inside search).  Google controls the actual ad company.   Google controls the intermediary who is supposed to broker the ads and their placement.   So Google control all the various pieces that have to talk to each other , and they also control the data associated with use of the ads.   So there is no real competition.  


    Sound like the old company store/company town. You get a job and have to live in company sold/leased housing and you have to shop in company supplied stores.   


    And last, but not least Google pays Apple 10 to 15,000,000,000 billion dollars per year for the default search position on iOS and macOS, if the EU wants to do anything useful, why don’t they eliminate that greasy deal, and if they are really concerned about the so-called gatekeepers, their definition, and if they want real competition, eliminate the gate keepers, particularly Microsoft and Google from camping out on another gate keepers territory, in short, make them actually have to compete with each other. 

    Definition gatekeeper is a creator of an OS and an ecosystem, if you possess/create/have a OS an ecosystem you can’t camp out in the other gate keepers, yard. Affectively, killing crushing small developers and mid-level developers, (it will never be enforced).

    Note: How little Apple camps out in the other gate keepers yards…..

    A actual developer perspective on the new Apple Vision Pro device/ecosystem, gives perspective of why Apple is way ahead of the gatekeeper competition.  

    edited June 2023 ronnwilliamlondonAlex1N
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