Google to change global ad practices in landmark antitrust deal

Google announced on Monday that it would change its global advertising practices after caving into pressure from French antitrust authorities for the first time.

The landmark deal struck with the French competition watchdog was made to ensure that the tech giant does not abuse its dominance and to help rebalance the power over advertising in favour of publishers.

Aside from the changes to its policy, the deal also includes a €220m fine for Google.

"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.

The watchdog found Google guilty of favouring its ad management platform for large publishers - Google Ad Manager - and its own online ad marketplace - Google AdX - where publishers sell space to advertisers in real-time.

Ad Manager provided AdX with strategic data such as the winning bidding prices.

AdX also enjoyed privileged access to requests made by advertisers via Google's ad services, the authority said according to Reuters.

The deal will require Google to improve its Ad Manager services and the relationship with competitors. The changes are expected to begin to be implemented in the first quarter of 2022.

Google also said it had agreed to make it easier for publishers to use its data and tools.

"We will be testing and developing these changes over the coming months before rolling them out more broadly, including some globally," the company added.