Google AdTech: Break Up or Break Out?

Abstract

The European Commission recently proposed a break-up of Google’s display advertising business. We argue that the market definition used by the Commission risks being too narrow and expand it to include Google’s broader ecosystem. We then ask a simple question; why can’t consumers choose which advertising network they would like to use with Google’s zero-priced online platforms? Our answer is that by integrating its advertising network into its popular online platforms, Google has foreclosed competition in the online advertising market by denying rival supply-side ad networks access to its customer base. We propose a remedy called marketised monetisation, which is complementary to the break-up proposed by the Commission. Marketised monetisation would introduce an interoperability layer between Google’s popular online services and third-party ad networks to make the online advertising market more contestable. The interoperability layer would allow consumers to choose which firm should monetise their usage of Google’s zero-priced products and services. We argue that such a remedy is in scope of the Commission’s current investigation, technically feasible, and consider how it could be implemented either through competition law or under the Digital Markets Act.

Keywords: antitrust, competition law, big tech, Google, adtech