European regulators have suggested that Google should split its digital ad business due to competition concerns. The European Commission has been investigating Google’s advertising practices for several years and has now proposed that the company should separate its ad tech business from its search engine and other services.
The proposal is part of a wider crackdown on big tech companies, which have been accused of using their dominant market positions to stifle competition. Google is currently the world’s largest digital advertising company, with a market share of around 30%.
The European Commission’s proposal would require Google to create a separate entity for its ad tech business, which includes tools for buying and selling digital advertising space. This would mean that Google’s competitors would have more opportunities to access the market and offer their own services.
The proposal has been met with mixed reactions from industry experts. Some argue that it would be a positive step towards promoting competition and innovation in the digital advertising market. Others, however, have raised concerns about the practicalities of implementing such a split and the potential impact on Google’s business model.
One of the main challenges of splitting Google’s ad tech business from its search engine and other services is that it would require significant restructuring of the company’s operations. Google’s ad tech tools are deeply integrated into its other products, such as YouTube and Google Maps, making it difficult to separate them out.
There are also concerns that a split could harm Google’s ability to offer personalised advertising, which is based on data collected from users across its various services. Personalised advertising is a key source of revenue for Google and is seen as a major advantage over its competitors.
Despite these challenges, the European Commission is pushing ahead with its proposal, arguing that it is necessary to promote fair competition in the digital advertising market. The proposal is still subject to further consultation and could be modified before it is implemented.
Overall, the proposal to split Google’s digital ad business is a significant development in the ongoing battle between regulators and big tech companies. It remains to be seen how Google will respond to the proposal and whether it will lead to a more level playing field in the digital advertising market.
