Google Proposes New Adtech Changes to Avoid EU-Ordered Breakup
Alphabet’s Google has submitted a new proposal to the European Commission in an effort to avoid a forced breakup of its advertising technology business. The move comes after the EU fined the company €2.95 billion in September for allegedly favoring its own adtech services and reinforcing the dominance of its ad exchange, AdX, in ways that harmed competitors, advertisers, and publishers.
EU regulators have demanded structural solutions to eliminate conflicts of interest across the adtech supply chain, even suggesting Google sell part of its advertising business. However, Google argues that such a breakup would be technically unworkable and disruptive for thousands of publishers and advertisers who rely on its tools.
In its newly submitted proposal—similar to the one presented to the U.S. Department of Justice—Google promises immediate product changes. Among the adjustments, publishers will be allowed to set different minimum prices for different bidders in Google Ad Manager. The company also pledges to improve interoperability across its ad products, giving publishers and advertisers greater flexibility and choice.
Despite the proposal, EU authorities may still order a breakup later if Google fails to fully comply, referencing past precedent such as the Microsoft case two decades ago. Meanwhile, the U.S. DOJ is pursuing its own case seeking the sale of AdX. A ruling in favor of the DOJ could influence the EU’s decision, according to sources.
Google maintains that divesting AdX would lead to long-term uncertainty and technical difficulties for the advertising ecosystem.
