EU publishers reject Google’s deal offer to settle antitrust case

Google’s advertising business has faced renewed scrutiny in the EU, with a recent proposal to sell its advertising marketplace, AdX, being rejected by European publishers. The tech giant offered the sale to resolve an antitrust investigation by the EU, which accuses Google of favouring its services. The investigation followed complaints from the European Publishers Council, and the European Commission has since charged Google with anti-competitive practices.

Publishers dismissed Google’s offer as insufficient, arguing that the sale of AdX alone would not address the broader conflicts of interest due to Google’s dominance across the entire adtech supply chain. These industry insiders suggest that more drastic measures may be needed to curb Google’s influence, but the EU has not yet demanded such extensive divestments.

Google, meanwhile, maintains that the Commission’s claims are based on a misinterpretation of the competitive nature of the advertising sector. Despite facing similar antitrust trials in the US over its advertising technology, the company continues to defend its business practices, where authorities have called for selling its Ad Manager product.

AdX, which allows publishers to auction unsold ad space to advertisers in real time, has become a key component in the ongoing investigation. The EU antitrust chief Margrethe Vestager previously suggested Google divest additional tools to resolve the issue. However, experts believe the Commission may first issue a simpler ruling to halt Google’s current practices before escalating to demands for asset sales.

With advertising contributing to 77% of Google’s $237.85 billion revenue in 2023, the company’s dominant position in digital advertising remains a central point of contention in the EU and globally.