The European Union is preparing to file a formal antitrust complaint against Google, which could result in significant fines and impact the advertising technology that generates the majority of the company’s revenue.
Bloomberg reported that the announcement of the statement of objections, expected to be made on Wednesday, will represent a further step in an ongoing conflict that has resulted in three EU penalties amounting to over €8 billion.
Individuals who wished to remain anonymous have reported that the new charges will focus on Alphabet Inc.’s ad tech business model.
Google’s primary source of revenue is its advertising business, which accounts for approximately 80% of its annual earnings. In 2022, the company generated around $225 billion in ad sales.
According to one source, the European Commission’s antitrust watchdog has received a significant complaint, marking a notable event during their current five-year mandate.
Under EU rules, fines for antitrust violations can reach as much as 10% of global sales – though penalties seldom approach that level and companies have the right to defend themselves before and after fines are levied.