Google parent Alphabet has now offered to let rival ad intermediaries run ads on YouTube to address a critical part of an EU antitrust investigation that could pave the way for it to resolve the case without a fine. The European Commission launched an investigation last year to examine whether the world’s gigantic provider of search and video was giving itself an unfair edge in digital advertising by restricting rival ad intermediaries and advertisers’ access to user data.
EU Competition Watchdog is Investigating the Restrictions Placed on Rival Ad Intermediaries
Furthermore, the EU competition watchdog singled out Google’s condition that advertisers use its Ad Manager to display ads on YouTube and possible restrictions on how rival ad intermediaries serve ads on YouTube. It is further looking into Google’s requirement that advertisers use its services Display & Video 360 and Google Ads to purchase YouTube ads. YouTube posted $6.9 billion in sales in the first quarter of this year.
In addition to this, the Commission and Google, which has previously said publishers and advertisers often use multiple technologies and platforms to sell ads, declined to comment. Google has been conferring remedies with the Commission since last year in a bid to prevent a fine that could reach 10% of its global turnover. The company will however need to offer more than just allowing rival ad intermediaries to run ads on YouTube in order to get a deal.
Last Year Google Generated $147 Billion in Revenue from Online Ads
The British competition agency CMA is also investigating Google’s ad practices against rival ad intermediaries. Last year, Google generated $147 billion in revenue from online ads, more than any other company in the world, with ads including search, YouTube, and Gmail accounting for the bulk of its overall sales and profit. The company’s display or network business, in which other media companies use Google technology to sell ads on their website and apps, accounted for about 16% of its revenue.
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