The European Union (EU) has intensified its antitrust scrutiny of Google‘s advertising practices. The EU Commission has accused the tech giant of engaging in “abusive practices in online advertising technology,” which may result in the division of its ad business. This latest move by the EU signifies a growing concern over the alleged anticompetitive behavior of Google, as it continues to dominate the adtech industry. The potential consequences include a mandatory divestment and a substantial fine, further challenging Google’s market position.

Executive Vice President of the EU Commission, Margrethe Vestager, highlighted that Google’s presence spans the entire adtech supply chain. The preliminary findings suggest that Google may have exploited its market position to favor its own intermediation services. This alleged behavior not only impacted competitors but also harmed publishers’ interests while driving up costs for advertisers. Consequently, the EU Commission deems it necessary to address these competition concerns through the compulsory divestment of specific Google services.

Google’s ad business faces simultaneous scrutiny from both the EU Commission and the US Department of Justice (DoJ). The DoJ filed a lawsuit earlier this year, accusing Google of illegally monopolizing the ad market. Consequently, major ad tech rivals withdrew from the market, discouraging new entrants and leaving the remaining competitors at a disadvantage. Now, the EU Commission has followed suit by asserting Google’s dominance in various adtech segments, including advertiser services, publisher services, and the AdX ad exchange.

The EU Commission specifically alleges that Google has abused its market position by engineering its buy- and sell-side intermediation tools to favor its own AdX exchange. The Commission highlights two potentially anticompetitive behaviors: AdX being given the opportunity to bid after other participants have submitted their bids and AdX being provided with information about rival bids in advance. Moreover, on the supply side, Google Ads predominantly placed bids on its own exchange, resulting in a substantial advantage over competing exchanges operated by rivals.

The EU Commission’s preliminary assessment indicates that any measures requiring Google to modify its conduct would not adequately address the competition concerns. Consequently, the Commission suggests that the only viable solution would be the mandatory divestment of a portion of Google’s services. By taking this approach, the EU aims to ensure a level playing field in the adtech market, promoting fair competition and protecting the interests of both advertisers and publishers.

Google will have an opportunity to respond to the EU Commission’s complaint before any final judgment is reached. However, should the allegations be upheld, Google could face not only a forced breakup but also a fine of up to 10 percent of its yearly global turnover, pending any appeals. It is worth noting that it is unusual for the EU to suggest a remedy prior to a guilty judgment.