Google Ad Tech Case, EU Market Test Decides Breakup Fate
- The European Commission is testing Google's compliance plan with 200 industry stakeholders to see if it resolves antitrust concerns without a forced breakup
- Google has proposed technical changes that allow publishers to set different minimum prices and improve interoperability with rival ad services
- Regulators simultaneously opened a new probe into Meta to investigate if WhatsApp is unfairly favoring its own AI features over competitors
The European Commission has officially launched a market test to evaluate Google’s latest peace offering. This move marks a critical juncture in a years-long antitrust battle that has already cost the tech giant billions. Regulators are now asking competitors and customers if Google’s proposed changes are enough to restore fair competition. The core issue involves allegations that Google manipulated the complex machinery of online advertising to favor its own services.
Brussels previously slapped Google with a massive €2.95 billion fine for these violations. That penalty served as a loud warning shot. The Commission found that the company used its dominance to squeeze out rival ad exchanges and intermediaries. Now the focus has shifted from punishment to correction. The current compliance plan is Google’s attempt to avoid a forced breakup of its lucrative ad tech business.
Teresa Ribera currently serves as the EU competition chief and she has described the proposal as a serious offer. This characterization suggests a potential thaw in what has been a deeply frozen relationship between Silicon Valley and Brussels. However she is not taking Google at its word. The Commission has sent detailed questionnaires to around 200 industry stakeholders. Their feedback will determine if the legal saga ends here or escalates further.
The details of Google’s plan focus on technical interoperability rather than selling off assets. The company has promised to give publishers more control over their inventory. One key concession allows media owners to set different minimum prices for different bidders on the Ad Manager platform. This change aims to level the playing field by removing the automatic advantage Google’s own buying tools previously enjoyed.
Interoperability is the second pillar of the proposal. Google claims it will make its systems work better with third-party technologies. This would theoretically give advertisers and publishers more freedom to mix and match services without being locked into the Google ecosystem. The goal is to address the specific conflict of interest identified by regulators without dismantling the integrated stack that generates billions in revenue.
The stakes for Google are incredibly high because a rejection of this plan could lead to structural remedies. That is regulatory code for a forced divestment. The European Commission has previously hinted that selling parts of the business might be the only way to truly solve the conflict. This market test is essentially Google’s final chance to prove that behavioral changes can solve structural problems.
Industry skepticism remains high despite the optimistic tone from Google’s legal team. Many rivals believe that the company’s grip on the ad stack is too tight to be loosened by minor policy tweaks. They argue that Google acts as both the auctioneer and a bidder in the same digital auctions. This dual role creates an inherent bias that no amount of interface changes can fully erase.
This European drama is playing out against a backdrop of global regulatory pressure. The US Department of Justice is pursuing a similar case against Google on American soil. A settlement in Europe could potentially influence the outcome across the Atlantic. However the US prosecutors have been more aggressive in demanding a breakup of the ad tech unit.
Meanwhile the European Commission is not stopping with Google. It opened a fresh front in its war on Big Tech dominance on the very same day. Regulators announced a formal probe into Meta Platforms Inc. The investigation focuses on WhatsApp and its new artificial intelligence features. Officials are concerned that Meta is using its messaging domnance to unfairly promote its own AI tools.
The worry is that Meta could effectively block third-party AI developers from accessing the massive WhatsApp user base. This would stifle innovation and give Meta’s own AI assistants an unfair head start. The EU is applying the same logic here as it did with Microsoft’s browser bundling decades ago. They want to ensure that the next generation of technology remains open to competition.
Meta will now be forced to submit its own set of solutions to appease these concerns. The threat of fines looms large for them as well. Penalties for antitrust violations can reach up to 10% of a company’s global annual revenue. While fines rarely hit that theoretical maximum they still represent a significant financial and reputational risk.
The timing of these moves sends a clear message to the incoming US administration. President Donald Trump has frequently criticized European regulators for targeting American companies. Yet the EU is signaling that it will continue to enforce its rulebook regardless of political pressure from Washington. The continent remains the world’s toughest policeman for the digital economy.
The next few months will be decisive for the digital advertising industry. If the market test yields positive results Google will legally commit to its promises. If the feedback is negative the Commission could revert to the nuclear option of divestment. The feedback from those 200 third parties will likely shape the future of how ads are bought and sold on the internet.a
For now the ball is in the court of the publishers and advertisers. They must decide if Google’s concessions are a genuine attempt at reform or just a smoke screen to preserve the status quo. Their answers will determine whether the "serious offer" is accepted or rejected. The era of unchecked digital dominance in Europe is clearly coming to an end.