According to a source with direct knowledge of the matter, European Union antitrust regulators are considering the possibility of ordering Alphabet Inc’s Google to divest a portion of its advertising-technology business.
The European Commission, the top antitrust watchdog of the EU, may release a charge sheet against Google on Wednesday. This adds to the ongoing efforts to reduce the tech giant’s dominance in digital advertisements across the Atlantic.
In 2022, the Commission initiated an inquiry into Google’s extensive involvement in the online display advertising supply chain, citing apprehension regarding its dominant market position.
The EU competition enforcer does not often give break-up orders, but there has been growing frustration due to Google’s lack of action regarding competition concerns, according to the source.
Alphabet’s first-quarter ad sales decreased from the previous year to $54.55 billion but exceeded analysts’ expectations. The company’s total revenue for the period was $69.79 billion.
Google has faced antitrust investigations in various continents due to concerns about its allegedly anti-competitive practices, which have been raised by its rivals.