The tech giant is facing a major confrontation with EU regulators over its dominance in digital advertising. Brussels has sent a clear message to Google: would you break yourself up, please?
Google faces an early November deadline to explain how it plans to comply with a European Commission ruling from September, which determined that the company had unlawfully preserved its control over the digital advertising infrastructure.
After a €2.95 billion fine, the European Commission and Google now stand in an unprecedented standoff, as EU officials consider what was once unimaginable — forcing a structural sale of part of a U.S. company. While the EU prefers a voluntary move, it may resort to coercive measures if necessary.
“The situation is very unusual,” said Anne Witt, a professor of competition law at EDHEC Business School in Lille, France. “Structural remedies are almost unprecedented at the EU level. It’s really the sledgehammer.”
In its September decision, the Commission took what Witt described as an “unusual and unprecedented step” — asking Google to propose its own corrective measures while implying that only divesting parts of its advertising technology division would satisfy EU regulators.
“It appears that the only way for Google to end its conflict of interest effectively is with a structural remedy, such as selling some part of its Adtech business,” said Executive Vice President Teresa Ribera, the Commission’s competition chief.
Brussels is escalating its antitrust battle with Google, signaling that only a partial breakup of its Adtech business might resolve the company’s conflict with EU competition law.