Google is offering to sell part of its ad tech business, but why EU publishers aren’t happy about the deal

Google’s proposal to sell part of its advertising technology business has been rejected by European Union publishers, sources familiar with the matter told Reuters. The tech giant has offered to divest itself of its advertising business, AdXin an unprecedented move to resolve the ongoing EU dispute antitrust investigation.
Two people with direct knowledge of the situation told Reuters that European publishers considered the offer insufficient and were pushing for a more extensive asset sale to allay concerns about Google’s dominance in the ad technology industry.
This European Commission launched its fourth antitrust case against Google last year, following a complaint from the European Publishers Council. The case focuses on allegations that Google favors its own advertising services, potentially limiting competition in the market digital advertising market.
According to Reuters, Google’s advertising revenue in 2023, which includes various services such as search, Gmail and YouTube, was $237.85 billion, accounting for 77% of the company’s total revenue.
The head of the EU antitrust office Margaret Vestager has previously suggested that Google divest its sell-side tools, including ad server Doubleclick for Publishers (DFP) and AdX, to resolve conflicts of interest. But sources suggest the Commission is unlikely to order an immediate divestment.
Instead, the regulator could initially order Google to cease alleged anti-competitive practices in the coming months. A potential divestment order could follow if the company fails to comply with the initial decision.
A Google spokesperson defended the company’s position, saying: “The European Commission’s case regarding our third-party ad products is based on misinterpretations of the ad technology sector, which is extremely competitive and rapidly evolving.”
Google is simultaneously fighting similar antitrust claims in the United States, where authorities are trying to force the company to sell its Ads Manager product.