📋 Tender Overview
The European Commission has opened a formal antitrust investigation to assess whether Google has violated EU competition rules by favouring its own online display advertising technology services in the so called ad tech supply chain to the detriment of competing providers of advertising technology services advertisers and online publishers. The formal investigation will notably examine whether Google is distorting competition by restricting access by third parties to user data for advertising purposes on websites and apps while reserving such data for its own use.Executive Vice-President Margrethe Vestager in charge of competition policy said Online advertising services are at the heart of how Google and publishers monetise their online services. Google collects data to be used for targeted advertising purposes it sells advertising space and also acts as an online advertising intermediary. So Google is present at almost all levels of the supply chain for online display advertising. We are concerned that Google has made it harder for rival online advertising services to compete in the so-called ad tech stack. A level playing field is of the essence for everyone in the supply chain. Fair competition is important - both for advertisers to reach consumers on publishers sites and for publishers to sell their space to advertisers to generate revenues and funding for content. We will also be looking at Googles policies on user tracking to make sure they are in line with fair competition.Many publishers rely on online display advertising to fund free online content for consumers. In 2019 display advertising spending in the EU was estimated to be approximately 20 billion. Google provides several advertising technology services that intermediate between advertisers and publishers in order to display ads on web sites or mobile apps.The Commissions investigation will focus on display advertising where Google offers a number of services both to advertisers and publishers. As part of its in-depth investigation the Commission will in particular examine The obligation to use Googles services Display Video 360 DV360 andor Google Ads to purchase online display advertisements on YouTube.The obligation to use Google Ad Manager to serve online display advertisements on YouTube and potential restrictions placed by Google on the way in which services competing with Google Ad Manager are able to serve online display advertisements on YouTube.The apparent favouring of Googles ad exchange AdX by DV360 andor Google Ads and the potential favouring of DV360 andor Google Ads by AdX.The restrictions placed by Google on the ability of third parties such as advertisers publishers or competing online display advertising intermediaries to access data about user identity or user behaviour which is available to Googles own advertising intermediation services including the Doubleclick ID.Googles announced plans to prohibit the placement of third party cookies on Chrome and replace them with the Privacy Sandbox set of tools including the effects on online display advertising and online display advertising intermediation markets.Googles announced plans to stop making the advertising identifier available to third parties on Android smart mobile devices when a user opts out of personalised advertising and the effects on online display advertising and online display advertising intermediation markets.If proven the practices under investigation may breach EU competition rules on anticompetitive agreements between companies Article 101 of the Treaty on the Functioning of the European Union TFEU andor on the abuse of a dominant position Articles 102 TFEU.The Commission will take into account the need to protect user privacy in accordance with EU laws in this respect such as the General Data Protection Regulation GDPR. Competition law and data protection laws must work hand in hand to ensure that display advertising markets operate on a level playing field in which all market participants protect user privacy in the same manner.The Commission will now carry out its in-depth investigation as a matter of priority. The opening of a formal investigation does not prejudge its outcome.
