"Shares in Alphabet (GOOGL) fell during early trading on Friday as the U.S. tech giant responded to the European Union's recent $3.4 billion fine, emphasizing that it will not divest its online advertising business. The response came a day after the bloc, in a separate case, launched an investigation into how Alphabet's Google ranks publishers and news sites' content on its search engine."
"In a blog post published on Friday, Google disclosed that it has submitted a proposal to the European Commission containing several tweaks it is willing to make to the advertising technology (AdTech) business. "We are also proposing significant changes to address any suggestions of conflict of interest, including increasing the interoperability of our tools to give publishers and advertisers more choice and flexibility," the tech company added."
"Teresa Ribera, the bloc's competition chief, suggested that selling parts of the business was one way Google could end this conflict of interest. The Commission, which is the executive arm of the EU and its market competition watchdog, emphasized that Google risks more decisive actions from the bloc if it does not put forward a case on how it will comply with its regulation within the next 60 days."
Alphabet affirmed it will not divest its online advertising business after the European Commission fined Google €2.95 billion for allegedly favoring its ad services. Shares in Alphabet fell in early trading following the response. The EU opened a separate probe into how Google ranks publishers and news sites in search results. Google submitted a proposal to the Commission offering AdTech adjustments, including options for different minimum prices in Google Ad Manager and increased interoperability of its tools. The Commission gave Google 60 days to demonstrate compliance or face further action. Google called the fine unjustified and plans to appeal.
Read at TipRanks Financial
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