The huge list of charges would be unveiled very soon and is all set to attack the main parent firm Alphabet’s business model as confirmed by sources that are familiar with the matter.
For those who might not be aware, Google’s advertising ordeal is one of the most successful ones out there today and it accounts for nearly 80% of the overall revenue. Meanwhile, by the year 2022, the advertising sales domain accounted for nearly $225 billion.
This news is one of the most serious ones in the form of a complaint that has arisen in the EC’s five-year working. Remember, they’re the main regulatory body that looks after the EU and so this news is a huge escalation in terms of how close we all are to see the EU slam the firm with a fine that could cross the $8.6 billion figure mark.
Most fines that we’ve come across in recent times have gone about targeting a company’s worldwide sales by 10%. But this one seems to be much higher than that and that means a huge chunk of the firm’s earnings are getting involved.
This seems to be a way by which regulators aim to put more pressure on tech giants so they think twice before making any error-filled calls. Remember, 10% earnings is often a very small figure so that means little to no effect would arise.
The shares for Alphabet did increase slightly recently but the Android maker is yet to lay down comments despite requests.
For years, tech giant Google has really put up a leading position in terms of how data collection takes place and how advertisers end up targeting users for their ads. This includes how they’re willing to sell advertising spaces and offer the right form of technology to search for publishers so their space is sold.
The European Union started an investigation into Google’s advertising means in 2021 and since then, it’s been on the radar for obvious reasons.
In the same way, it was interesting to see how Google had even gotten into a contract with Meta for a program linked to Open Bidding. This was originally a part of this investigation but toward the latter part of 2022, it was left out.
The woes of Google did not stop there as it was constantly scrutinized by the UK’s authorities in terms of what sort of advertising practices had been involved and how it was conducting operations across the US.
Every firm has the right to protect itself against the growing number of regulatory bodies that keep on popping up with time. And that is exactly why tech giant Google is fighting off such fines from the European Union in a legal manner.
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by Dr. Hura Anwar via Digital Information World
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