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French antitrust body fines Google, gets US company to amend terms of online ad services

Alphabet’s Google agreed to make changes to some of its widely-used online advertising services under an unprecedented settlement with France’s antitrust watchdog released on Monday. 


The authority also fined the Mountain View, California-based company 220 million euros ($267.48 million) after a probe found that it had abused its market power in the intricate ad business online, where some of its tools have become almost essential for large publishers. 


The French watchdog’s decision is an attempt to rebalance the power struggle over online ads in favour of publishers, which held sway in the business in the pre-internet era, but lost considerable ground with the rise of Google and Facebook. 


The watchdog said that the decision opened the way for publishers who felt disadvantaged to seek damages from Google. Many publishers globally have expressed unhappiness over ad practices employed by the tech giants. 


“The decision to sanction Google is of particular significance because it’s the first decision in the world focusing on the complex algorithmic auction processes on which the online ad business relies,” said France’s antitrust chief Isabelle de Silva. Ms de Silva said that the fine was reduced because of the settlement, but she did not give specifics.


The watchdog said that Google would not seek to appeal the authority’s decision in court. The watchdog found that Google Ad Manager, the firm’s ad management platform for large publishers, favoured AdX, its own online ad marketplace, where publishers sell space to advertisers in real time. It did so notably by providing AdX strategic data such as the winning bidding prices. The watchdog also said that Google AdX offered Google Ad Manager superior interoperability features than for rival so-called sell-side platforms, the crucial technology that allows publishers to manage advertising spaces available for purchase, fill them with ads and receive revenue.

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