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July 20, 2022
Google Offers To Let Ad Rivals Place YouTube Ads in EU Antitrust Probe
Everything You Need To Know About Google’s Reaction in Less Than 50 Words
Google reconsiders rival competition by offering ad rivals YouTube ad space in response to the European Union Antitrust investigation to potentially avoid a $2.8 billion fine for EU Antitrust violation.
Tell Me More
If you’re unfamiliar with the EU Antitrust law and US Antitrust laws, they are policies prohibiting agreements among rivals that cheat or abuse the competition.
Last year the European Commission opened an investigation to examine YouTube, the world’s largest video search engine, for pandering unfair advantages by restricting access to user data from rival advertisers.
Google Ad’s top competitors include AdRoll, Criteo, and Vidyard, to name a few.
Despite the investigation opened last year, Google disappeared from the scene without paying the proposed fine.
In response to the allegations, Google’s parent company, Alphabet, made a generous offer to the EU commission to allow rival advertising tech companies to place ads without the chains of total Google control.
Google reconsiders rival competition by offering ad rivals YouTube ad space in response to the European Union Antitrust investigation.
Here’s what the EU rivals found wrong with Google’s new advertising offer agreements:
- Advertisers must use Ad Manager to show ads on YouTube with potential restrictions that will change how the rivals can deliver ads on Youtube.
- Advertisers will use Google’s Display & Video 360 services.
- Advertisers will use Google Ads to buy Youtube ads, a standard method for YouTubers and publishes to purchase ad space on the platform.
- Advertisers may be unable to use multi-tech and multi-platforms like cash app and PayPal to sell ads.
These requirements for rival advertisers only increase Google’s overall revenue. YouTube earned an estimated $6.9 billion in sales revenue for the first quarter of 2022.
Last year, Google and the EU attempted to agree to serve Google with a fine of over 10% of its global turnover.
However, the EU expects more than new ad space to pay their wrong dues to advertisers on Youtube.
Not to mention, Google generated the most revenue this year at nearly $147 billion from online ads on YouTube and Gmail.
And Google lets network businesses use Google technology to sell ads on websites and apps that account for 16% of the revenue.
Probing for Justice
In addition to the EU Antitrust investigation, the British Competition and Markets Authority (CMA) joined the investigation to potentially serve justice to innocent ad rivals against Google’s possible corrupt anticompetitive ad practices that served to favor Google services.
At the end of the day EU’s probe doesn’t just seek to hunt corruption, but it doesn’t shed light on how massive the ad tech market is.
Having rival ad space on Youtube would allow advertisers to compete and help consumers find the products and services they search for. Until then, advertisers can wait to see when Google will allow rivals to run ads on YouTube in which countries.
Source: CNBC
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