Google ‘set to pay fine as it gets close to deal’ over French antitrust case

Google is reportedly set to pay a fine as it gets close to settling an antitrust investigation in France over allegations it abused its power in online advertising.  

The case, which hadn’t been previously disclosed, looked into Google’s dominance as a provider of tools for both buying and selling adverts online.

The French Competition Authority alleged that Google’s tool to help websites and apps sell ads gave its online ad auction system, AdX, an advantage over other rival auction operators.

The French case also alleged other forms of self-preferencing in the advertising side of Google’s business, the Wall Street Journal reported.

Google is reportedly set to pay a fine as it gets close to settling an antitrust investigation in France over allegations it abused its power in online advertising (file photo)

The publication also claimed that the search engine is expected to pay a fine and institute operational changes.

To settle the matter, Google reportedly offered to removing obstacles that it puts up against competitors. Those changes would only be binding in France but may be more used elsewhere by the company.

However as part of the deal Google will neither accept or deny culpability, the WSJ quoted sources as saying.

The deal is yet to be approved by the Competition Authority’s board, but if it is, it could be announced in weeks and would be binding only in France, according to the newspaper.

Google spokeswoman Leslie Pitterson did not comment on the reported settlement but said the company’s third-party ad tech products work with both Google’s partners’ and competitors’ products.

‘We continue to take in feedback and make updates to better serve users and the wider ecosystem,’ she said in a statement.

The French Competition Authority said it did not comment on ongoing cases.

The settlement could be among the first resolutions in a wave of investigations or lawsuits targeting Google’s ads business, which generated $147billion in revenue last year, more than any other internet company. 

In December 2019, the French Authority fined Alphabet Inc’s Google 150million euros ($183million) for abusing of its dominant position in the search advertising market.

It claimed the operating rules of its Google Ads advertising platform were ‘opaque and difficult to understand’ and were applied in an unfair and random manner.

Most of Google’s sales come from search and YouTube ads. But about $23billion last year was tied to helping publishers sell ads.

The settlement could be among the first resolutions in a wave of investigations or lawsuits targeting Google’s ads business (file photo)

The connections between Google’s dueling businesses are drawing antitrust scrutiny, including calls from critics for a break-up.

Texas, backed by other US states, filed a lawsuit against Google in December accusing it of breaking antitrust law in how it runs its online advertising business – in a case that appears to be similar to the French allegations.

Google also is fighting lawsuits in the United States from several advertisers, rivals and publishers around the same issues.

Meanwhile, Germany’s antitrust watchdog has launched a probe into whether Google Germany, Google Ireland and its parent company Alphabet (GOOGL.O) are exploiting their market dominance in the way they handle data, it said on Tuesday.

The Federal Cartel Office said the investigation would consider whether the tech giant offers users enough choice in how it uses their data across the wide range of digital services it provides. 

‘Google’s business model is fundamentally based on processing the data of its users,’ cartel office chief Andreas Mundt said in a statement.

‘We will look very closely into the terms on which user data is processed. A central question is whether consumers have sufficient choice regarding the use of their data by Google, if they want to use Google services.’

Google said people use its services because they are helpful, not because they are forced to do so or because they cannot find any alternatives.

‘We give people easy control over how their information is used and we limit the use of personal information,’ spokesman Ralf Bremer previously said, adding Google would assist the cartel office with its inquiries.

The watchdog has sought to treat user data as a competition issue, a position challenged by critics who say the matter falls under the purview of the European Union’s privacy laws.