• Allegations in France of damaging the market of online advertisements
  • Rules may also apply outside France

Google will pay a fine of $270 million in France, or about Rs 1947 crore, after allegations of abuse of monopoly in the online advertising market. It has reached an agreement to pay the fine over allegations from France’s Competition Regulatory Commission.

It has also announced on Monday that it will make changes in the online advertising auction system to make it transparent. Although the fine for Alphabet, the Google-owned company, which earns around Rs 2.98 lakh crore every year from ads, is modest, it is the first time a competition regulatory commission has launched a direct attack on Google’s advertising business.

Google has also agreed to make changes in online advertising technology. In this, he and some special companies were taking advantage. Google’s director-general of law in France, Maria Gomery, said the changes could apply outside France as well.

Ending competition like this

  • The chairman of the Commission of Inquiry, Isabelle de Silva, said that Google’s technology not only saved its monopoly in online advertising but also increased it.
  • French publisher Rossel La Voise Group reported that Google is also abusing the monopoly to get more commission on ads. Does not even create content for advertisements itself.
  • News organizations said, Google has created an economic imbalance, which is causing damage to newspapers.

Developed countries getting tough on tech companies

Government crackdowns against tech companies have increased across Europe and America.

  • EU and UK: Competition watchdog commissions begin an investigation into allegations of Facebook adopting unfair trade practices for classified advertising via Marketplace.
  • US: The investigation is ongoing into allegations of abuse of monopoly and commission by Apple through the Appstore.
  • EU and US: Some states have brought strict laws for content moderation of social media companies.

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