Alphabet's (GOOGL) dominant online search engine Google has been charged with anti-competitive advertising practices by regulators in Europe.
The European antitrust regulators are calling on Alphabet to sell part of its digital advertising business to address their concerns.
In a statement, the regulator said that it “Takes issue with Google favouring its own online display advertising technology services to the detriment of competing providers…”
The European Commission stated that Google has abused its dominance by favouring its own advertising services in auctions aimed at choosing online ad vendors.
The European competition watchdog said a behavioural change on the part of Alphabet is unlikely to be effective at stopping the company’s anti-competitive practices.
Google is currently the most dominant digital advertising platform in the world with a 28% market share of worldwide advertising revenue, according to industry data.
Google’s 2022 online advertising revenue totaled $224.5 billion U.S., accounting for 79% of the company’s total annual revenue.
Alphabet, the parent company of Google, had sought to settle the case but regulators grew frustrated with the company’s lack of concessions.
The tech giant is expected to fight the anticompetitive charges in Europe.
Alphabet’s stock has risen 16% in the last year to $123.83 U.S. per share.
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