back to article 'Google is present at almost all levels of the supply chain' for online ads: It's time for a competition probe, says EU

The European Commission (EC) reckons it's zeroing in on long-running concerns that Google may have an unfair advantage when it comes to online advertising. The commission today opened a formal antitrust investigation to figure out if Google has "violated EU competition rules… to the detriment of competing providers of …

  1. HAL-9000
    IT Angle

    although exactly how this might be achieved remains "fuzzy". ... I think a sternly worded letter from a suitably prestigious minister ought to put the fear of god up them

    \s

    1. Graham Cobb Silver badge

      Hmm, I think possibly a sternly worded letter from Google to a prestigious minister pointing out that it would be a shame if the world accidentally discovered the contents of the minister's searches and site history might swap the god-fear around a bit.

    2. Anonymous Coward
      Anonymous Coward

      Typically, the resolution of such affairs involve a fine of 2-3 billions euros. That way, the EU has asserted their dominance, and Google got a reminder (though not very painful) that they need to watch what they're doing.

  2. Throatwarbler Mangrove Silver badge
    Mushroom

    Not all bad

    Step 1: Allow Google to monopolize Internet advertising

    Step 2: Drop a MOAB on Mountain View

    Result: No more Internet advertising

    I call it a win.

    1. Inventor of the Marmite Laser Silver badge

      Re: Not all bad

      "Step 2: Drop a MOAB on Mountain View"

      Why should YOU have all the fun

  3. martinusher Silver badge

    Its not as if Internet advertising was essential to life -- or even commerce

    Internet advertising is a bit like selling an anti-elephant candle. You light this in your suburban home and voila!, no elephants. Sure, there are plenty of people who don't have one and don't seem to be plagued by them but they're running an awful risk. Realistically, its an expression of faith, a self-supporting pyramid of believers who suck advertising revenue because they are all True Believers, the sort that daren't even consider the possibility that their entire industry is a waste of resources.

    I think that most of us would agree that the entire Internet advertising ecosystem is an infernal nuisance -- and that's being nice about it. It covers our web pages with crap, sucks the life out of our computers and provides ample opportunity for malware purveyors, all on the off chance that we might buy something that is vaguely related to a search we might have done a while back. Its not even real advertising -- actually finding a particular product to buy is often a nightmare of irrelevant search results from vendors of unknown or dubious provenance. Its why Jeff Bezos is rolling in it, it is not his fault that Amazon is one of only a handful of reliable vendors that can usually suggest products that you might use and then reliably deliver them.

    I'd guess the reason for going after Google is the same reason people used to rob banks - its where the money is. Its so much easier to shake them down for a hundred million or two Euro than come up with a reliable and fair taxation scheme. There's plenty of others that want a piece of Google's business as well -- why spend big on R&D and facilities when you can get a court to effectively hand over a chunk.

    1. John Brown (no body) Silver badge

      Re: Its not as if Internet advertising was essential to life -- or even commerce

      "I'd guess the reason for going after Google is the same reason people used to rob banks - its where the money is. Its so much easier to shake them down for a hundred million or two Euro than come up with a reliable and fair taxation scheme. There's plenty of others that want a piece of Google's business as well -- why spend big on R&D and facilities when you can get a court to effectively hand over a chunk."

      Or maybe, just maybe, Google, even with their army of lawyers advising them, are not staying within the rules in every jurisdiction and need to be slapped down. I doubt any fines which may be imposed will be anything more than a token compared to Googles war chest and daily income and I can guarantee none of the fines will go to any competitors R&D departments. Even to the smallest economies in the EU, a few 100 million credit units is a drop in the ocean, so it's not even enough to be called a "tax grab".

  4. Claverhouse Silver badge
    Unhappy

    Really ?

    "Thousands of European businesses use our advertising products to reach new customers and fund their websites every single day."

    One imagines that without advertising stuff would still be getting sold.

    Just without a tax to keep Google in business.

    1. Anonymous Coward
      Anonymous Coward

      Re: Really ?

      Stuff would still get sold, but not the same. An online clothes store like Zappos or Zalando could hardly start existing without advertising — how would you even know they exist? People would essentially keep buying at the same stores over and over, because they wouldn't know the alternatives, and wouldn't bother to look for any. Without advertising, the incumbents have a strong advantage over any newcomer trying to start in the business... Meaning there would be a lot less competition, and that's not generally a good thing for consumers.

      1. iron Silver badge

        Re: Really ?

        I haven't seen an advert online or on TV in years. Yet recently I was able to find several online stores I'd never visiited before to buy a new coat. How did I achieve this amazing trick you ask? I used something called a search engine.

    2. Roland6 Silver badge

      Re: Really ?

      One imagines that without Google.advertising stuff would still be getting sold.

      FTFY

      It should still be possible to advertise (online) without paying Google. Google are merely using the fact that they dominate the market and thus are used by thousands of European businesses as the rationale as to why they are essential and thus should be left alone to continue to build their monopoly...

  5. Dinanziame Silver badge
    Alert

    Be careful what you wish for

    "Google is distorting competition by restricting access by third parties to user data for advertising purposes on websites and apps, while reserving such data for its own use."

    If you parse this carefully, you realize that the stated issue here is not that Google knows too much about users, but that their competitors don't know as much.

    So what do you think will happen? Will Google stop gathering so much data? Or will the EU force them to give* the same data to their competitors?

    *(or sell, even. Considering the EU's "solution" for online shopping, it's more likely)

    1. hayzoos

      Re: Be careful what you wish for

      Exactly my thought on the article. Targeted advertising is damn near impossible to implement without running afoul of privacy laws. Keep in mind targeted advertising is being sold by marketers also know as salesmen in earlier vernacular. The best of them can "sell a refrigerator to an eskimo", average ones can sell bottled air to you or I. Targeted advertising is the defacto standard for online ads. Targeted ads are not worth the bits they are made of. I have never purchased anything due to an online ad. Yet the targeted ad industry is spying on our every move to have data to develop targeting for ads.

  6. RyokuMas
    Facepalm

    Old news...

    "... Google may have an unfair advantage when it comes to online advertising..."

    In other news, the sky is blue and water is wet.

  7. codejunky Silver badge

    Shock

    Google said: "Thousands of European businesses use our advertising products to reach new customers and fund their websites every single day. They choose them because they're competitive and effective.

    The price of success is having people wanting to tear you down.

  8. Rich 2 Silver badge

    Yet another probe…

    How many probes and investigations have been made into googlies’ business practices now? 20? 30? And how many have resulted in …well …any result whatsoever? 1? 2? And how many of those were of any real consequence? Ah….

    It’s a joke. It runs like this…

    1/ See blatant and obvious abuse

    2/ wait 5 years

    3/ launch investigation

    4/ wait 5 years

    5/ do fuck-all

    And it’s not just googlies of course.

POST COMMENT House rules

Not a member of The Register? Create a new account here.

  • Enter your comment

  • Add an icon

Anonymous cowards cannot choose their icon

Other stories you might like