Google Proposes “Less Disruptive” EU Ad-Tech Solution
▼ Summary
– Google submitted a compliance plan to the European Commission proposing changes to its ad-tech operations while rejecting calls to break up its business.
– The plan includes product-level changes, such as allowing publishers to set different minimum prices for bidders in Google Ad Manager.
– Google is also proposing greater interoperability between its tools and rivals’ to provide publishers and advertisers with more flexibility.
– Critics argue that without deeper structural reform, the power dynamics in ad tech may not fundamentally shift.
– Regulators must decide whether to accept Google’s proposed tweaks or push for a breakup of its ad-tech business.
Google has formally presented a new compliance strategy to European Union authorities, outlining a series of adjustments to its advertising technology operations. The proposal aims to address competition concerns while avoiding a full-scale breakup of its ad-tech business, which regulators had previously suggested. This approach focuses on implementing specific product-level modifications and improving how different advertising systems work together.
Under the suggested changes, publishers would gain the ability to set varying minimum price floors for different bidders within Google Ad Manager. This would allow them more granular control over how their ad inventory is valued and sold. Additionally, Google is recommending enhanced interoperability between its own advertising tools and those offered by competing companies. The objective is to provide publishers and advertisers with greater flexibility when selecting and combining advertising technologies for their campaigns.
Google maintains that these proposed refinements are sufficient to resolve the European Commission’s antitrust worries. The company emphasizes that its plan offers a less disruptive path forward compared to the alternative of a mandatory corporate separation, which it argues could create significant instability across the digital advertising market.
For marketers and advertisers, the implications are considerable. Should regulators approve Google’s suggested fixes, it could mean continued platform stability, avoiding the potential turbulence of a breakup. However, the specific changes could also reshape auction dynamics, influence pricing transparency, and affect how easily advertisers can access and use competing tools. The final decision will ultimately determine the degree of control, choice, and cost efficiency available to businesses operating within Europe’s advertising ecosystem.
Behind the proposal lies a clear strategy: Google is advocating for technical adjustments over a fundamental structural reorganization. Critics of this approach contend that without more sweeping reforms, the underlying power imbalances in the online advertising sector may remain largely unchanged. They argue that only a significant restructuring can genuinely level the playing field for all market participants.
In essence, Google is attempting to negotiate a middle ground, addressing the EU’s regulatory demands while preserving the integrity of its integrated advertising technology stack. The ball is now in the regulators’ court. They must decide whether to accept these incremental changes as adequate, or to insist on more drastic measures, including the possibility of breaking up parts of Google’s advertising division. This decision follows a history of regulatory action, including a prior $3.5 billion fine imposed on Google by the EU concerning its ad-tech practices.
(Source: Search Engine Land)
