Source: Life of Brand, Morning Wrap
Bonjour. The French antitrust watchdog just gave Google a huge fine for abusing its online advertising dominance, and Google just said “fine” without fighting back… It could be a big deal for other big tech and other countries.
What did Google do wrongly here?
A little background knowledge to start off: Google operates a huge online advertising infrastructure - like a system that all publishers would use to manage and sell their ad spaces. This makes Google the most powerful online marketer in the world.
But maybe it’s “too powerful”... said the French regulator. After its investigation, it found that Google didn’t treat all ad sellers fairly when selling ads. 🤯 It instead favors its own services and undermines others, through a “complex algorithmic auction processes”.
- E.g. Its own platform would enjoy some privilege when requesting data.
Google didn’t admit, nor did it deny. It said that it would not appeal the decision, and just accepted the USD 270 mln fine. Is this a de facto acknowledgement? 🤔
Is this a big deal?
A big Yes. Though the settlement only applies to France, Google has already pledged to improve its ad selling services, while making efforts to improve the transparency of its online ad service globally. 🌎
This is also the first ruling of this kind targeting big techs 📖 Other countries, other tech firms may follow. Seems that there’s more to come...