France’s competition watchdog, L’Autorité de la concurrence, has fined Google up to 220 million euros (~ $ 267 million) for abusing its dominant market position for placing online ads, in the latest in a string of fines by European authorities adopting tougher stances against U.S. tech giants.
The penalty is part of a settlement reached after three media groups – News Corp, French daily Le Figaro and Belgium’s Groupe Rossel – accused Google of effectively having a monopoly over online ad sales.
The French Competition Authority said Monday Google had unfairly sent business to its own services, and discriminated against the competition. Google has agreed to pay the fine and end some of its self-preferencing practices, the watchdog said.
L’Autorité began investigating Google’s ad tech business following complaints from several French publishers.
Today is saying Google had requested an agreement – and “is not discussing the facts of the case” – with the technology giant proposing certain ‘interoperability’ commitments that the regulator has accepted, and that will form a binding part of the decision.
The watchdog called the action a world first in probing Google’s complex algorithmic ad auctions.
Commenting on a statement, L’Autorité ‘s president, Isabelle de Silva said: “The decision to sanction Google has a very special meaning because it is the first decision in the world to study complex algorithmic processes. Auctions through which online display advertising works. The investigation, carried out particularly quickly, revealed the processes by which Google, based on its considerable dominance in ad servers for sites and applications, outperformed its competitors on both ad servers and SSP platforms. These very serious practices penalized competition in the emerging online advertising market and have enabled Google to not only preserve but also increase its dominant position. This sanction and these commitments will restore a level playing field for all players and the ability of publishers to make the most of their advertising space. “
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