France watchdog fines Google $267M for favouring own ads over rivals’

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France's competition regulator fines Google $267 million after finding it had favoured its own services for placing online ads at the expense of rivals

Internet-related services company Google logo displayed on a tablet screen in Lille, northern France.

Google later said it will test changes to its widely-used online advertising services over the coming months following the French antitrust decision.The competition authority determined that Google gave preferential treatment to its own ad inventory auction service AdX and to Doubleclick Ad Exchange, its real-time platform for letting clients choose and buy ads.

For example, regulators found that Doubleclick would vary the commission it took when making a sale based on prices offered by other so-called ad servers. Media groups saw their online ad revenues crimped "even though their economic model is also strongly weakened by the decline in sales of print subscriptions and the decline in associated advertising revenue" in the shift to online news, it said.

Google did not contest the findings, and the regulator said the company has committed to operational changes including improved interoperability with third-party ad placement providers. The fine represents just a tiny fraction of the $55.3 billion in revenue booked by Google in the first quarter of this year alone, mainly from online ad sales.

 

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