Tuesday, 02 January 2024 12:17 GMT

EU Puts Google Ad-Tech Fine On Ice Over Trade Tensions


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A federal district court in Virginia has ruled that Google unlawfully monopolised its publisher ad‐server and ad‐exchange markets, a decision that has now been met with a pause in Brussels, where regulators have deferred a long‐anticipated fine while awaiting developments in U. S. trade policy.

A U. S. judge determined that Google secured illegal dominance in the open‐web display advertising ecosystem, by tying its ad‐server to its ad‐exchange, securing near‐absolute control over pricing and access, to the detriment of publishers, competition and the open internet. The Department of Justice and several state attorneys general are pursuing remedies, including potential divestiture of Google's ad‐tech division.

Amid this U. S. legal storm, the European Commission had planned to impose its own fine and enforce changes against Google. However, EU authorities have postponed the action, reportedly in light of transatlantic trade talks over tariffs on European automobiles, where the U. S. may reduce duties from 27.5 per cent to 15 per cent. Sources suggest the delay is expected to be short, lasting less than a month.

Germany's Monopolies Commission has publicly warned that delaying the enforcement risks undermining the independence of EU competition policy, raising concerns over whether political considerations are influencing regulatory decisions.

This EU‐U. S. dynamic unfolds as Google continues to appeal the U. S. court's finding, arguing that its ad‐tech tools remain competitive and beneficial. Meanwhile, the DOJ's focus on structural remedies signifies increasing willingness to force a breakup of parts of Google's business if necessary.

Beyond the courtroom and trading table, the broader narrative raises questions about the integrity of regulatory enforcement when geopolitics and high-stakes trade negotiations intersect. It underscores the challenge of balancing robust antitrust action with diplomatic strategy-a tension that appears most acute in the case of one of the world's most powerful tech platforms.

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