Google Prepares EU Offer, Skips Full Split After €3 Billion Fine

Google is preparing an offer to the EU after a 3 billion euros fine. The company has skipped a full split, instead focusing on its core activities. Alphabet Inc. operates a web-based search engine, YouTube, and Gmail, and is also involved in home automation, biotechnology, AI research, and investment services. Net sales are primarily generated in the US, with smaller shares from other regions.

Google is preparing a proposal to the European Union in response to a €3 billion fine imposed for alleged antitrust violations in its advertising technology business. The company will avoid a full split of its ad tech division, focusing instead on core activities. This decision comes as Google faces increasing regulatory scrutiny both in the EU and the United States.

The EU's antitrust chief, Teresa Ribera, hinted at the need for unspecified "parts" of Google's ad tech arm to be divested to ensure fair competition. This stance is less definitive than that of her predecessor, Margrethe Vestager, who previously pushed for the sale of Google's Ad Manager, the AdX exchange, and DoubleClick for Publishers. Google has consistently opposed any calls for divestment and declined to comment on the matter Google Readies EU Offer After €3 Billion Fine, Skips Full Split^[1].

This €3 billion fine is part of a larger €10 billion antitrust bill Google has accrued in the EU over the past decade. The company has vowed to appeal the decision. In the United States, a judge has ruled that Google illegally monopolized adtech markets, and the Justice Department is pushing for divestment. The EU and US regulators are intensifying their efforts to enforce structural fixes, with Ribera meeting with DOJ chief Gail Slater in Washington this week Google Readies EU Offer After €3 Billion Fine, Skips Full Split^[1].

Alphabet Inc., Google's parent company, operates a diverse range of businesses, including a web-based search engine (Google), a video hosting and broadcasting site (YouTube), and a free online messaging service (Gmail). The company is also involved in home automation solutions (Nest Labs), biotechnology (Calico), artificial intelligence research (Google X), and investment services (Google Ventures and Google Capital). Net sales are primarily generated in the United States, with smaller shares from other regions Citizens Adjusts Price Target on Alphabet to $290 From $250, Maintains Market Outperform Rating^[2].

The regulatory pressure on Google underscores the evolving landscape of antitrust enforcement, as regulators worldwide seek to ensure fair competition in digital markets. Investors should closely monitor the developments as they may impact Alphabet Inc.'s financial performance and strategic direction.