EU Unlikely to Order Google Breakup in Antitrust Case, Sources Say

European Union antitrust regulators are expected to stop short of ordering Alphabet’s (GOOGL.O) Google to break up its adtech business, despite earlier threats, according to sources familiar with the matter. Instead, the EU is likely to impose a significant fine and demand that Google end its anti-competitive practices in the digital advertising space.

The decision, expected in the coming months, follows a warning issued last year by EU antitrust chief Margrethe Vestager, who had suggested that breaking up Google’s adtech operations could be necessary to resolve conflicts of interest. Google controls a large portion of the adtech market, managing both ad buying tools like Google Ads and ad exchanges like AdX. The company has been accused of illegally favoring its own services in ad auctions, exploiting its dominance since 2014.

However, a breakup order is now considered unlikely due to the complexity of implementing such a move. Regulators may revisit the option if Google continues its anti-competitive behavior. The situation echoes a precedent set two decades ago when the EU took on Microsoft for similar dominance issues.

While the EU’s final decision could still change, it is unlikely to be issued before Vestager leaves office in November. Google, which has faced over €8.25 billion ($9.14 billion) in EU antitrust fines in the last decade, has declined to comment on the ongoing case. Google’s advertising revenue in 2023 reached $237.85 billion, comprising 77% of its total revenue.