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Google Lets Rival Firms Place Ads On YouTube To Address An EU Antitrust Investigation

In what is being described as a very interesting turn of events, Google’s parent firm Alphabet has given other rival ad companies to place their ads across YouTube. The move is said to be in line with an ongoing antitrust investigation by the European Union.

Moreover, the decision is said to make way for the possibility of a solution that could settle the case without having the need to pay a fine. This news was recently confirmed by those familiar with the ordeal.

In 2021, we saw the European Commission open up an investigation to see if the world’s biggest provider of videos was directly involved in unfair practices related to digital advertising by putting an end to competitors’ access to data belonging to different users.

It was shocking to see how the regulatory body from the EU delineated YouTube and also spoke in detail about Google’s policies relating to advertisers. The latter is forced to make use of Ad Managers that put ads on display across the platform.

Therefore, it indirectly restricts the manner in which other firms put ads on YouTube.

At the same time, we’re also hearing more reports about Google’s policies that entail advertisers using some particular services like Display and Video 360 to purchase the app’s ads. But most importantly, let’s not forget how the company put up its stats this year with sales worth $6.9 billion during this year’s first quarter.

Both the regulatory watchdog and search engine giant are refusing to comment on the matter despite being reached out by several media outlets on numerous occasions.

Similarly, both these companies have mentioned in the past that there are so many publishers using different sorts of technologies and methods to sell their advertisements.

Last year, an insider from Google did speak to the media outlet Reuters about how the firm is on the road to discussing solutions to help prevent a fine from being implemented. And that could go as far as reaching the company’s 10% turnover.

While the dialogue does appear to be going on the right track, it now appears that the company will require more than just one solution to help YouTube address other issues to seal the deal.

On the other hand, there are some reports about the tech giant’s ad practices being under scrutiny by the CMA as well.

In 2021, Google’s revenue stats provide how the firm generated $147 billion from online advertisements and that’s literally more than any other firm around the globe. This entails all sorts of ads but it was Gmail as well as its YouTube that scored the most in terms of sales and overall profitable business.

Google’s display business where so many other firms are given the chance to use the company’s technology for the selling of their own ads across different apps or web pages was also calculated. However, that only managed to make up 16% of the company’s revenue overall.


Read next: Google, Twitter And Facebook Forced To Fight Fake Accounts Or Risk Big Fines By The EU While Tech Giants Also Prepare For New Misinformation Rules

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