Google's Big Move: Changing Ad Rules Without Selling

Regulatory Backlash

Google is under intense scrutiny from regulators on both sides of the Atlantic. The European Union (EU) and the United States (US) have raised concerns about Google's control over ad tools and its ad exchange, AdX. The EU has already imposed a hefty fine of 2.95 billion euros on Google, accusing the tech giant of favoring its own services, which allegedly harms competitors and the broader ad industry.

Google's Proposed Solution

Instead of divesting parts of its business, Google has proposed changes to its ad tools to address the concerns. The company claims these changes will resolve the issues without causing significant disruption. Key changes include:

• Allowing publishers to set different minimum prices for different bidders, giving them more control over their ad inventory.
• Improving interoperability with third-party tools, providing advertisers and publishers with more choices.

Uncertainty Over EU Satisfaction

Despite these proposals, the EU remains skeptical. Regulators might still push for Google to sell parts of its business, a move reminiscent of the actions taken against Microsoft in the past. Meanwhile, the US is also pressuring Google to sell AdX, but Google argues that such a sale would be disastrous, causing major disruptions for advertisers and publishers.

Legal Battles and Future Outlook

The US case is currently in court. A ruling in favor of the US government could potentially resolve the EU's concerns as well. For now, Google is hopeful that its proposed changes will be sufficient to satisfy regulators and avoid further penalties or forced divestitures.