Google agrees to change its advertising practices | Western lawyer

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Google says it will make changes to its global advertising business to ensure it does not abuse its dominant position, giving in to antitrust pressure for the first time in a landmark deal with French authorities. The deal with the French competition watchdog could help rebalance the power over advertising in favor of publishers, who ruled commerce in the pre-Internet era but lost control with the rise of advertising. Google and Facebook. The settlement, which was announced on Monday and also saw Google fined € 220 million (AU $ 345 million), is the first time the US tech giant has agreed to make changes to its huge advertising activity, which generates most of its income. French antitrust chief Isabelle de Silva said the move to fine Google was the first of its kind. “The decision to sanction Google is particularly important as it is the first decision in the world to focus on the complex algorithmic auction processes on which the online advertising industry relies,” she said. The watchdog discovered that Google’s ad management platform for large publishers – Google Ad Manager – promotes the company’s own online advertising market – Google AdX – where publishers sell space to real-time advertisers. Ad Manager provided AdX with strategic data such as winning auction prices, while AdX also had privileged access to requests made by advertisers through Google’s advertising services, the authority said. AdX, in turn, exchanged data more easily with Ad Manager than with other ad management platforms, the watchdog added. Such platforms are crucial for publishers to manage and sell ad space. Under the terms of the agreement, Google is committed to improving the functioning of Ad Manager services with competing ad servers and advertising space sales platforms, the French watchdog said. Some changes would be implemented by the first quarter of 2022, he said, adding that Google would not appeal the decision. Google has also said it has agreed to facilitate the use of its data and tools by publishers. “We will test and develop these changes over the next few months before rolling them out more widely, including some globally,” the company added. Many publishers around the world have been enraged by the advertising practices employed by tech giants, whose success hinges on the wealth of data they have amassed over the years. Most of Google’s sales come from YouTube search and ads. But last year, around $ 23 billion (A $ 30 billion) was linked to helping publishers sell ads, attracting antitrust scrutiny on links between Google’s companies, as well as calls from some. critics to dismantle the sprawling enterprise. French Finance Minister Bruno Le Maire welcomed the antitrust decision. “The practices put in place by Google to favor its own advertising technologies have affected press groups, whose business model is heavily dependent on advertising revenue,” he said. “These are serious practices and they have been rightly punished.” The French authority said the decision paves the way for publishers who feel disadvantaged to seek damages from Google. Associated Australian Press

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