EU Is Supposed to Be Unlikely to Issue Google a Break-Up Order Right Now

 EU regulators are gearing up to take a hard look at Google's advertising empire, but it seems they’re pulling back from a once-radical idea: breaking it up. According to sources close to the matter, while Alphabet’s Google may face steep penalties for its anti-competitive practices in the adtech sector, the feared breakup of the company’s powerful ad business is off the table for now.

The European Commission, led by antitrust chief Margrethe Vestager, had previously floated the idea of splitting Google’s ad operations as a way to rein in its dominance. Such a move would have been unprecedented—marking the toughest action ever taken against the tech giant. Vestager had accused Google of tipping the scales in favor of its own advertising platforms, giving it an unfair edge since 2014. 

EU Is Supposed to Be Unlikely to Issue Google a Break-Up Order Right Now

Now, with a decision and a hefty fine looming, officials are likely opting for a more measured approach, citing the sheer complexity of dismantling a business as intertwined as Google’s. However, they haven’t entirely ruled out a breakup in the future, particularly if Google persists in using its market dominance to block fair competition. Those with knowledge of the situation point to an earlier case involving Microsoft as a precedent, suggesting that a breakup order could resurface if Google continues to push boundaries.

Although an official ruling is expected soon, it may not arrive before Vestager leaves office in November, though the possibility still lingers. For its part, Google remains tight-lipped, as does the European Commission, both declining to comment on what could be a pivotal moment in the ongoing battle between Big Tech and regulatory bodies.

Google’s dominance in the digital advertising world is staggering. In 2023, its ad revenue hit $237.85 billion, making up a whopping 77% of the company’s total income. From search and YouTube ads to services like Gmail and Google Maps, the company has become the backbone of the digital ad industry. Vestager had previously suggested that Google might have to divest key components of its ad ecosystem, such as its sell-side tool DFP and its ad exchange AdX, due to conflicts of interest. Google also controls ad-buying tools like Google Ads and DV360, which are used to place bids on ad exchanges—creating a situation where the company can unfairly favor its own products.

Meanwhile, Google faces an additional antitrust battle in the U.S., where the Department of Justice has accused the company of trying to monopolize the ad tech market, specifically by dominating both the publisher ad server and advertiser network spaces.

For now, while the possibility of a breakup remains distant, Google’s ad empire faces intense scrutiny on both sides of the Atlantic. What happens next could reshape the future of digital advertising and set a new standard for how tech giants are regulated worldwide.