Report: EU would rather fine Google than break it up
European Union antitrust officials are considering ordering Alphabet Inc., the parent company of Google, to end its anticompetitive practices in digital advertising, but will not seek to break up the company as they have previously threatened, according to people familiar with the matter, Reuters reported .
European Union regulators are expected to issue a decision soon that includes a large fine for Google, after antitrust chief Margrethe Vestager threatened last year to break up Google's lucrative advertising business.
If implemented, the move would have been the first of its kind in antitrust cases, making it the harshest regulatory penalty Google has faced to date.
According to the sources, it is unlikely that an order to break up the company will be issued due to the complications involved. However, this option may be considered at a later stage if Google continues its anti-competitive practices.
The sources added that the European Commission's decision could change as events unfold. A decision is not expected before Vestager leaves office in November.
The company has paid fines of €8.25 billion in antitrust cases in the European Union over the past decade.
Google's advertising revenues in 2023 across all its services amounted to about $237.85 billion, equivalent to 77% of the company's total revenues. Google is the world's leading platform in the field of digital advertising.
The European Commission last year slapped Google with a series of charges after a two-year investigation into its conduct, including that it had multiple conflicting advertising platforms and favoured its own advertising services while stifling competitors.
Google could face a fine of up to 10% of its annual sales.
In a related context, the US Department of Justice is studying the possibility of dismantling Google , following a historic court ruling in the United States convicting the company of monopoly in the online search market.
The company is facing another antitrust case brought by the US Department of Justice, which accuses it of seeking to monopolize the markets for ad servers and networks, and attempting to dominate the market for ad exchange platforms.