On Monday, Alphabet Inc.’s Google agreed to change its advertisement practices after the France’s antitrust watchdog imposed the search giants with a $268 million fine. Google agreed to make changes to some of its widely-used online advertising services.
The authority fined the search giants after a probe found it abusing its market power in the intricate ad business online, where some of its tools have become almost essential for large publishers.
The France’s antitrust watchdog and their issue with Google
The French watchdog’s decision is a trial to bring back the balance and the power struggle over online ads in favour of publishers, which held sway in the business in the pre-Internet era, but lost considerable ground with the rise big firms like Google and Facebook.
The watchdog remarked that the decision opens the doors for publishers who felt considerable less powerful to seek damages from Google. Many publishers globally have expressed unhappiness over the ad practices employed by the tech giants since years.
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France’s antitrust chief, Isabelle de Silva said that-
“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.”
Further adding she also said that the fine was reduced because of the settlement, but she did not give specifics.
The main concern and the reason behind imposing the fine
The French authority’s investigation focused on the tools which Google offers the publishers online to sell and balance online ads. The watchdog found that Google Ad Manager, the firm’s ad management platform for large publishers who favoured AdX, its own online ad marketplace, where publishers sell space to advertisers really quick.
The watchdog also said Google AdX offered Google Ad Manager superior interoperability features than for rival sell-side platforms (SSP), the exclusive technology that allows publishers to manage advertising spaces available for purchase, fill them with ads and receive revenue in return.
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Google’s response
Google spokesperson didn’t immediately reply to a request seeking comment. The watchdog said Google will not seek help to appeal the authority’s decision in court. The settlement with Google showcased that the firm is ready bend to antitrust pressure and to make operational changes to some of its most trending ad business tools.
Under the terms of the settlement, Google offered commitments to improve the interoperability of Google Ad Manager. Services with third-party ad server and ad space sales platform too.
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Google to comply with India’s new IT rules
Google’s chief executive officer, Sundar Pichai, has changed and framed the company’s plans to comply with India’s new Intermediary Rules. Pichai said the company’s local teams are under discussion with the government, but it will comply with the local laws. He also said the company will continue to publish its transparency reports, which include data on the legal information requests it gets from governments.
The Indian government has stated that the intention behind the rules is not to violate the right to privacy. Both Google and Facebook have put out job postings for chief compliance officers on their careers pages.
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