Google Rejects EU’s Demand to Break Up

Google has dismissed the European Union’s demand for significant structural changes in its business model. The tech giant’s proposed measures do not align with the expectations set by both the EU Commission and U.S. authorities regarding the online advertising market.

Google’s Response to EU Demands

The proposals submitted by Google to Brussels have been criticized as insufficient. They mirror the behavioral remedies proposed in a U.S. federal court case related to ad technology, which is currently being overseen by the Donald Trump administration. Closing arguments in this case are set to begin on Monday.

Chances of Compulsion to Break Up

Legal experts suggest that any potential for Google to undergo a forced breakup is more likely to take place in the United States. Historically, the EU has not implemented structural remedies, making it difficult to enforce such changes, according to legal analysts.

Criticism of Behavioral Remedies

Critics argue that simply applying technical tweaks, known as behavioral commitments, will not suffice to rectify competition distortions. Max von Thun from the Open Markets Institute remarked, “The only credible solution is a forced divestment of part of Google’s advertising business – anything else is just window dressing.”

He emphasized that behavioral remedies have consistently failed to yield meaningful change in Google’s operations. This sentiment is echoed in the aftermath of the EU’s 2017 Google Shopping decision, which has been regarded as ineffective in addressing the competitive landscape.

Conclusion

As Google navigates through these regulatory challenges, the effectiveness of its proposed measures remains under scrutiny. Stakeholders are keenly observing how this situation will unfold in both the European and U.S. contexts.