Brussels rules Google breached competition rules

Google could be forced to sell key parts of its business after the European Commission ruled it had abused its dominant position in advertising technology.

Publishing its preliminary view on Wednesday, the Commission - which has been investigating possible anticompetitive conduct in the online adtech sector for two years - said it believed Google had breached European Union antitrust rules.

It alleges that the US giant had distorted competition by favouring its own online display adtech services to the detriment of competing providers.

It also recommended a potential break-up of the company, arguing behavioural remedy was likely to be "ineffective". Instead, it believes "only the mandatory divestment of Google of part of its services would address [the Commission's] competition concerns".

Such a move would the first time that the Commission, which has spent years investigating alleged anti-competitive behaviour in the sector, has ordered the break-up of a tech giant.

Margrethe Vestager, executive vice-president in charge of competition policy, said: "Google has a very strong market position in the online advertising technology sector. It collects users’ data, it sells advertising space, and it acts as an online advertising intermediary. So Google is present at almost all levels of the so-called adtech supply chain.

"Our preliminary concern is that Google may have used its market position to favour its own intermediate services.

"If confirmed, Google’s practices would be illegal under our competition rules."

She also acknowledged that requests for divestitures were "quite rare".

Google’s adtech business accounted for around 79% of total revenues last year, with ad revenues totalling $224.5bn.

In a statement, Dan Taylor, vice president of Global Ads at Google, said: "Our advertising technology tools help websites and apps fund their content, and enable businesses of all sizes to effectively reach new customers.

"Google remains committed to creating value for our publisher and advertiser partners in this highly competitive sector. The Commission’s investigation focuses on a narrow aspect of our advertising business and is not new. We disagree with the EC’s view and we will respond accordingly."

Shares in Alphabet, Google’s parent company, were largely flat in pre-market trading as at 1330 BST.