France Fines Google $268M for Adtech Abuses and Gets Interoperability Commitments (techcrunch.com) 9
France's competition watchdog, L'Autorite de la concurrence, has fined Google up to $268M in a case related to self-preferencing within the adtech market which the watchdog found constituted an abuse by Google of a dominant position for ad servers for website publishers and mobile apps. From a report: L'Autorite began looking into Google's adtech business following complaints from a number of French publishers. Today it said Google had requested a settlement -- and is "not disputing the facts of the case" -- with the tech giant proposing certain 'interoperability' commitments that the regulator has accepted, and which will form a binding part of the decision. The watchdog called the action a world first in probing Google's complex algorithmic ad auctions.
Commenting in a statement, L'Autorite's president, Isabelle de Silva, said: "The decision sanctioning Google has a very special meaning because it is the first decision in the world to look into complex algorithmic processes. Auctions through which online display advertising works. The investigation, carried out particularly quickly, revealed the processes by which Google, relying on its considerable dominant position on ad servers for sites and applications, was favored over its competitors on both ad servers and SSP platforms. These very serious practices penalized competition in the emerging online advertising market, and have enabled Google not only to preserve but also to increase its dominant position. This sanction and these commitments will make it possible to restore a level playing field for all players, and the ability of publishers to make the most of their advertising space."
Commenting in a statement, L'Autorite's president, Isabelle de Silva, said: "The decision sanctioning Google has a very special meaning because it is the first decision in the world to look into complex algorithmic processes. Auctions through which online display advertising works. The investigation, carried out particularly quickly, revealed the processes by which Google, relying on its considerable dominant position on ad servers for sites and applications, was favored over its competitors on both ad servers and SSP platforms. These very serious practices penalized competition in the emerging online advertising market, and have enabled Google not only to preserve but also to increase its dominant position. This sanction and these commitments will make it possible to restore a level playing field for all players, and the ability of publishers to make the most of their advertising space."
12 hours (Score:5, Informative)
Literally only 12 hours of their revenue, according to the latest financials. They'll keep fucking around.
Re:12 hours (Score:5, Informative)
If they keep fucking around the fines will get bigger. The fine is relatively small because they didn't fight it, they admitted that the accusations were correct and agreed to binding changes to their platform.
Re: (Score:3, Interesting)
> The fine is relatively small because they didn't fight it, they admitted that the accusations were correct and agreed to binding changes to their platform.
Read: Small tweak to ensure the actions are further obscured and use a different named tool.
> If they keep fucking around the fines will get bigger.
Read: We complied with the last agreement, but now you want us to change something else for a small fine, because it's a different mechanism this time.
Re: (Score:2)
Why would you compare it to revenue and not profits, and why the entire company and not just the operations in the area of complaint (not sure if that's just France or all of EU, either way it's not the entirety of Google).
I guarantee you when the company does the math to determine if it's worth it to comply or not they are looking at profits in the affected area, not company wide revenues.
Re: (Score:2)
Because reliable profit numbers are hard to come by, because they play tax games. Their profits are relatively close to revenue, so it's Good Enough for Slashdot. Depending on how you measure, their margins are 30 to 65%, far exceeding most businesses.
Re:12 hours (Score:4, Insightful)
THAT will force them to take notice.
Aaw, such wide-eyed idealism, it's so cute (Score:5, Informative)
This sanction and these commitments will make it possible to restore a level playing field
The sanction is chump change for Google, and the commitments are only worth how hard and how often the authorities are willing to audit Google to ensure they comply - i.e. not much
Also, on a side note...
the emerging online advertising market
Wait, what? Online advertisers have been plaguing the internet for decades. If anything, I'd call it mature enough to smell of stale urine.
Re: (Score:3)
and the commitments are only worth how hard and how often the authorities are willing to audit Google to ensure they comply - i.e. not much
Your opinion is only worth how hard and how often you go back and evaluate the effect of regulatory actions like this. But details are boring; much easier to cast yourself as a wise man of the world confident that you'll never need to answer to the specifics. Regulatory bodies are in constant struggle with market actors, but the idea that they have no effect is particula