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> The Commission preliminarily finds that, in this particular case, a behavioural remedy is likely to be ineffective to prevent the risk that Google continues s
by s1k3s 3y ago
> The Commission preliminarily finds that, in this particular case, a behavioural remedy is likely to be ineffective to prevent the risk that Google continues such self-preferencing conducts or engages in new ones. Google is active on both sides of the market with its publisher ad server and with its ad buying tools and holds a dominant position on both ends. Furthermore, it operates the largest ad exchange. This leads to a situation of inherent conflicts of interest for Google. The Commission's preliminary view is therefore that only the mandatory divestment by Google of part of its services would address its competition concerns.
https://ec.europa.eu/commission/presscorner/detail/en/ip_23_3207 https://ec.europa.eu/commission/presscorner/detail/en/ip_23_...
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How would this work, in practice?
- chx 3y agoTo quote > Ad exchanges are driven by a simple demand and supply mechanism. Publishers want to sell ad space on their website to the highest bidder and advertisers want to buy ad units that provide good visibility. This is where an ad exchange comes into the picture. > This digital marketplace is part of the programmatic advertising ecosystem and is powered by real-time bidding (RTB) technology. It connects advertisers on a demand-side platform (DSP) with publishers on a supply-side platform (SSP). Google purchased DoubleClick in 2008 which is the largest such. The problem here is, the SSP is also Google -- Google Search most importantly, YouTube as well. There is more! They also run an ad server. To quote again > an ad server is to ads what WordPress is to content So an advertiser loads their ad into Google ad server for serving the ad then participates at a Google exchange to bid on the price of the ad. This gives Google an astounding amount of insight, fairly similar to insider trading which absolutely should not be allowed. So, they could be forced to spin out the ad server and the ad exchange.