EU investigates Google and Meta for possible competition gap

The European Union (EU) threatened on Friday to crack down on a deal between Google and Facebook parent company Meta for online advertising services, saying it could violate the bloc’s competition rules.

The new research in Europe, which is spearheading efforts to curb big tech companies, takes aim at the very heart of Google’s business: the digital advertising that generates nearly all of its revenue.

In the market of “technology advertising” In which Google and a constellation of online advertising companies participate, the company controls access to advertisers who place ads on its dominant search platform. Google also handles the auction process for advertisers to place ads in a post.

The community competition control body opened an investigation into a 2018 pact involving the participation of Meta’s “Audience Network” service in Google’s “Open Bidding” program.

The European Commission said the deal could be part of an effort to exclude ad tech services that compete with the Open Bidding program, which could harm advertisers and consumers.

“If confirmed by our research, this would restrict and distort competition in the already concentrated ad tech market, to the detriment of rival ad techs, advertisers and ultimately consumers.European Competition Commissioner Margrethe Vestager said in a statement.

Britain has opened its own investigation into the deal between Google and Meta.

The European Commission said that it has been in contact with the British anti-competition authority and that “intends to cooperate closely in this investigation in accordance with applicable procedures and standards.”