Google has decided to leave rival advertising intermediaries the option of placing ads on YouTube, according to information from Reuters, published on June 14. According to the news agency, this is an attempt by the American firm to close an antitrust investigation by the European Commission.
Google wants to avoid a heavy fine from the Commission
European competition authorities opened an investigation against Google and its video streaming service a year ago. Advertisers are forced to go through the Google Ads advertising manager to buy space on YouTube. They are also forced to go through Display & Video 360.
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According to the Commission, this could constitute an unfair advantage granted by Google. This would limit access to user data for other platforms. Google defended itself at the time, explaining that advertisers had the possibility of mobilizing several technologies and platforms to broadcast their advertisements.
By opening its system, Google is taking a step towards the European Commission. The American giant risks a fine of up to 10% of its global turnover, 257 billion dollars in 2021. Sufficient motivation to change things.
Advertising is Google’s primary source of revenue. In the first quarter of 2022, it accounted for 80% of the company’s revenue, $54.66 billion out of $68.01 billion in overall revenue. YouTube with search engine business and Gmail is the major advertising revenue source.
The advertising activity of the giant in danger
According to information from Reuters, this first step from Google is a step in the right direction. However, there are still other concerns within the European competition authority, the company will have to make additional efforts. One of its spokespersons told Engadget“ We engaged constructively with the European Commission “.
Google is being sued in the same register by the British competition authority, the CMA. The company is also threatened by a law debated in the US Congress, against conflicts of interest within the advertising sector. Mountain View’s most lucrative business is under attack from all sides more than ever.