Google Proposes AdTech Changes to EU to Avoid Forced AdX Sale Amid 2.95 Billion Euro Fine

Antitrust Challenges and Strategic Adjustments

Alphabet Inc.'s Google has submitted a proposal to the European Commission to address antitrust concerns over its adtech dominance, avoiding a potential forced sale of its ad exchange business. The proposal, mirroring one offered in the U.S. Department of Justice investigation, includes immediate product changes to eliminate conflicts of interest and enhance interoperability for publishers and advertisers according to reports. Regulators have scrutinized Google's control over tools used by advertisers and publishers, including its AdX platform, which has been central to allegations of anti-competitive behavior according to reports. The European Commission fined Google 2.95 billion euros in September 2024 for favoring its own adtech services, demanding measures to resolve the issue by November 2025 according to reports.

Google's proposal aims to avoid a breakup of its adtech operations, which the company argues would disrupt services for thousands of publishers and advertisers. The European Commission has warned of potential breakup orders if anti-competitive practices persist, citing precedents like the Microsoft antitrust case. In the U.S., the Department of Justice seeks to compel the sale of AdX, a move Google deems technically unworkable according to reports. The company's legal battle in U.S. courts could influence the EU's approach, as a favorable ruling for the Justice Department might resolve the Commission's concerns according to reports.

AI and Innovation Initiatives

Google continues to expand its AI capabilities, recently launching a private AI compute system to enhance cloud privacy. The system, powered by custom TPUs and Titanium Intelligence Enclaves, allows sensitive data analysis without exposing it to external scrutiny according to reports. This move aligns with broader trends in privacy-focused AI development, as seen in Apple's recent initiatives according to reports. Additionally, Google has integrated its 'Nano Banana' AI model into the Remini app, boosting its weekly installs to 1.16 million. The collaboration with Bending Spoons highlights Google's strategy to embed AI into consumer-facing applications according to reports.

Market Position and Ownership Structure

Alphabet remains a dominant force in global technology, according to reports. Its ownership structure is defined by a tiered shareholder system, with Class B shares granting significant voting power to founders and insiders according to reports. Institutional investors like Vanguard and BlackRock hold substantial stakes, while CEO and other executives maintain insider ownership according to reports. The company's revenue streams are heavily reliant on advertising, according to reports.

Regulatory and Competitive Pressures

Google faces ongoing antitrust scrutiny in both the U.S. and EU, with courts and regulators challenging its dominance in search and adtech. A 2024 U.S. federal court ruling deemed Google's search and adtech practices monopolistic, prompting the Justice Department to propose divesting the Chrome browser unit. In the UK, competition authorities have criticized Google's adtech operations, emphasizing the need for urgent reforms according to reports. Despite these challenges, , underscoring its commitment to maintaining market leadership according to reports.

Product Innovations and User Engagement

Google's recent product launches aim to boost user engagement and diversify revenue streams. The introduction of a dedicated 'Images' tab in its mobile app targets Pinterest's user base, offering personalized for creative projects according to reports. The feature, which allows users to save and organize images, also tests in-app advertising, reflecting Google's strategy to monetize its search ecosystem according to reports. Separately, the Pixel 10's and Recorder app leverage enhanced AI capabilities to provide more timely suggestions and multilingual audio summaries according to reports. These innovations highlight Google's focus on integrating AI into everyday user experiences according to reports.