Google split "unites" US and EU - US legal case could trigger bloc's competition probes
The call by competition law enforcers in the United States to break up Google could embolden the EU as the bloc seeks to push forward its own investigation.
The US Department of Justice called on the tech giant to separate its search and advertising businesses, according to a court document, just weeks after a landmark ruling found that Google illegally maintained its monopoly on ad technology.
This could encourage the European Commission to conclude its investigation into Google's advertising and search, after sending the company formal charges in June 2023. "In this tense geopolitical environment, this proposal from the Department of Justice is good news for the European Commission," said a European lawyer for the sector.
At a time when the EU executive is "anxious not to upset the US administration," the Commission "could act in the shadow of the Justice Department, as they could claim to be doing the same thing," the lawyer explained. Of course, the US decision has no legal bearing on Brussels's, and critics argue that it may not pave the way for the bloc to act.
"The US case could have an impact on the European Commission's investigation, but that is not certain. Even if the Justice Department pushes for a breakup of Google, I doubt the US administration would be happy to see the EU order something similar," said a law professor in Amsterdam. He also noted that "on a legal level, the US decision would not directly affect the European Commission's investigation."
The US regulator is asking Google to divest itself of its Ad Exchange and DoubleClick for Publishers ad server. The commission would also like to see the company divest part of its business.
"The Commission is taking note of developments in the Google advertising technology case in the US," the official sources said, recalling the EU's previous view that the company violated competition rules in the advertising industry.
“Therefore, only a mandatory reduction of Google’s investments in a number of services would address our competition concerns,” EU officials said. Given the global reach of Google’s business, it is unlikely that Brussels would make a decision without coordinating with its US counterparts. A trial in the US case is scheduled for September.
According to Google, the Justice Department's proposals to force a sale of its ad technology tools "go beyond the Court's records, have no legal basis, and would harm publishers and advertisers."
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