Up to 10% Annual Revenue Fine Possible
US Big Tech Companies Face Comprehensive Pressure
[Asia Economy Reporter Kim Suhwan] The European Union (EU) executive body, the European Commission, has officially launched an antitrust investigation into Google. As the EU scrutinizes Google's core revenue source, the online advertising sector, there are expectations that the investigation results could significantly impact Google's operating profits. Furthermore, with Google joining Apple, Facebook, and Amazon in facing charges or antitrust investigations from the EU, European authorities are intensifying comprehensive pressure on major U.S. tech companies.
On the 22nd (local time), according to the Wall Street Journal (WSJ) and Bloomberg News, the EU Commission announced that it has initiated an official antitrust investigation to assess whether Google violated EU competition rules in the online display advertising technology services sector.
The EU Commission explained that this investigation will examine whether Google distorted competition by restricting competitors or third parties such as advertisers from accessing user data on websites and applications for advertising purposes, while using such data exclusively for itself.
This issue is similar to the case last year when ten U.S. states, led by Texas, filed a lawsuit against Google for anti-competitive practices.
Margrethe Vestager, EU Commissioner for Competition, stated, "We are concerned that Google has made it more difficult for competitors in the so-called 'advertising technology' supply chain to compete in online advertising services."
Additionally, the current antitrust investigation includes matters that have not previously been raised against Google. It is reported that the investigation will also cover whether Google deliberately excluded competing advertising companies in relation to ad purchasing agency services on its YouTube platform.
If Google's antitrust violations are confirmed in this investigation, the EU can prosecute Google and impose fines of up to 10% of its annual revenue.
Notably, the EU has previously fined Google a total of $9 billion over three occasions for anti-competitive conduct.
However, despite these fines, the EU has determined that Google's anti-competitive behavior continues, leading to the initiation of this formal antitrust investigation, which is a step before formal prosecution.
Bloomberg analyst Aitor Ortiz said, "This investigation is targeting Google's core business, the online advertising sector," adding, "Depending on the investigation results and future sanctions, it could significantly damage Google's operating profits."
Earlier, the EU filed antitrust charges against Amazon last year and Apple in April of this year, and at the beginning of this month, it launched an antitrust investigation into Facebook. With the EU officially starting an antitrust investigation into Google as well, it has begun to intensify antitrust pressure on all major U.S. platform companies.
Bloomberg reported, "The Google antitrust investigation is a continuation of regulatory pressure currently being applied to big tech companies worldwide," emphasizing that "the focus is on allegations of abuse of market dominance by these companies' platforms."
Furthermore, the EU plans to establish the 'Digital Markets Act (DMA)' by early next year, which will allow it to impose fines of up to 10% of annual revenue and enforce business segment separations if companies with de facto monopolistic positions in internet platforms, such as Google and Apple, force consumers and advertisers to use only their products.
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