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Google slapped with $268 million fine for abusing market power

Google slapped with $268 million fine by French Competition Authority for abusing market power
The French Competition Authority has fined Google $268 million for abusing its market power in the online advertising industry.

Technology

Google slapped with $268 million fine for abusing market power

The French Competition Authority has fined Google $268 million for abusing its market power in the online advertising industry. It said the internet giant had unfairly sent business to its own services and discriminated against competition. The regulator started to look into the matter after US-based News Corp, French newspaper Le Figaro and the Belgian press group Rossel filed a complaint against Google.




France’s competition watchdog’s investigations established that Google gave preferential treatment to its DFP advertising server, which allows publishers of sites and applications to sell their advertising space, and its SSP AdX listing platform, which organizes auction processes and allows publishers to sell their impressions or advertising inventory to advertisers.

Isabelle de Silva, president of the French Competition Authority, in an official statement described the decision as “the first in the world to look at the complex algorithmic auction processes by which online advertising display operates.” She pointed out that the investigation revealed processes by which Google favored itself over its competitors on advertising servers and supply-side platforms.

“These very serious practices have penalized competition in the emerging online advertising market, and have enabled Google not only to preserve but also to increase its dominant position,” de Silve said. “This sanction and these commitments will make it possible to re-establish a level playing field for all actors, and the ability of publishers to make the most of their advertising spaces.”

The regulator noted that the company has a particular responsibility not to distort competition due to its dominance, especially as many other publishers had suffered a loss in paper subscription sales and paper advertising revenue.


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Maria Gomri, legal director of Google France, said the company will make a series of changes to its advertising technology. “We recognize the role that ad tech plays in supporting access to content and information and we are committed to working collaboratively with regulators and investing in new products and technologies that give publishers more choice and better results when using our platforms.”


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  1. Pingback: Twitter has written to MeitY seeking more time to comply with the new IT rules because of the prevailing COVID-19 pandemic.

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