Rabu, 20 Maret 2019

The EU fines Google $1.69 billion for bundling search and advertising - Ars Technica

A Google logo on an Android phone.

Google and the EU's European Commission are making all sorts of announcements lately. Fresh off the revelation that Google would implement a browser and search-engine picker in EU-sold Android devices, Google's advertising division is getting slapped with a fine next, to the tune of €1.5 billion ($1.69 billion). The European Commission's latest antitrust ruling says that Google's bundling of its advertising platform with its custom search engine program is anti-competitive toward other ad providers.

The particular wing of Google's advertising empire the Commission is concerned with here is "AdSense for Search." Adsense for Search does not refer to the famous ads above Google.com search results but, instead, are ads displayed in "Custom Search" results that can be embedded inside their websites. We have a version of this on Ars—just click the magnifying glass in the top navigation bar and search for something. You won't leave Ars Technica; instead you'll get a customized version of Google Search embedded in arstechnica.com, complete with Google Ads above the results. These are the "Adsense for Search" ads, and they are different from Google.com ads. The European Commission's ruling is all about these "ads for custom search engines."

The European Commission provided this helpful graphic of Google's custom search ad practices.
The European Commission provided this helpful graphic of Google's custom search ad practices.

The European Commission reviewed "hundreds" of Google advertising contracts and found a range of behavior from Google's Ad division that it deemed anti-competitive. First, from 2006 to 2009, Google ads had to exclusively be shown on pages with Google custom search engines. You weren't allowed to do something like use Google to crawl your site and then show Yahoo ads above the embedded results.

The Commission noted that Google loosened this requirement in 2009 and replaced it with another practice it found uncompetitive: "Premium Placement" clauses. These clauses said that, while you could show custom search advertisements from a competing ad provider, Google's ads had to go in the top slots, and there were a minimum number of Google ads you needed to serve on your custom search page. Changing the way rival advertisements were displayed also required written approval from Google.

Basically, Google was bundling its ad platform with its custom search engine for websites, and the European Commission ruled that arrangement was anti-competitive toward other ad providers. European Competition Commissioner Margrethe Vestager laid out the Commission's view of the situation, saying, "Google has cemented its dominance in online search adverts and shielded itself from competitive pressure by imposing anti-competitive contractual restrictions on third-party websites. This is illegal under EU antitrust rules. The misconduct lasted over 10 years and denied other companies the possibility to compete on the merits and to innovate - and consumers the benefits of competition."

Google has yet to issue a response to this latest fine.

Let's block ads! (Why?)


https://arstechnica.com/tech-policy/2019/03/google-fined-1-69-billion-by-the-eu-for-anti-competitive-advertising-practices/

2019-03-20 15:25:00Z
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