Google’s business model consists – in layman’s terms – of placing advertising in places where the user of the services of this company must see it. Whether in Google search results, or in YouTube suggestions, it’s advertising.
Here lies the core of Google’s business activity as a company and not as a search engine. Imagine Google as an advertising company that, to distribute it, uses advanced technologies, algorithms and other technical buzzwords that give it a dominant position. It is here that Brussels intends to intervene with the European Commission to be pressured to do so.
The European Commission will be more attentive to Google’s business
As the Political given the immense and complex machine that is Google, rivals end up being pushed out of the tables and competitive areas. This would gradually generate more complaints and build up pressure for the Commission to take action.
Indeed, for more than five years we have seen similar requests for both companies trying to compete with Google. Let us recall, for example, the case of the UK’s Aptoide who struggled with the dominant position of the Google Play Store.
The recent past of interactions between the European Commission and Google brings to mind a history of fines that, taken together, exceed $ 8 billion. There were three instances in which the American was accused of anti-competitive practices.
Now, according to the aforementioned source, the European Commission conducts two new investigations to the North American technology business model in order to obtain more information on revenue sources and other business practices.
New European investigations of the American giant
The first focuses on how technology collects and uses information from users. The second will, according to the source, focus on how Google makes its platform profitable, on how to conduct business, over the entire commercial aspect.
Regarding the first investigation, “The Commission has potential concerns about how Google collects, accesses, processes, uses and makes the information profitable”, the source points out.
The second case focuses on the Brussels investigation of “Google’s practices with advertising technology (” ad tech “)”. About how their algorithms can overlap it too much with competitors or other platforms that want to enter this market and the possibility that this is not intentionally taking place.
Google is also under investigation for similar reasons in the United States of America and the United Kingdom.
So far Google has not commented on the case, nor has the European Commission issued an official statement.
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