Big change coming to YouTube ads

Google has offered to start allowing rival advertising intermediaries to run ads on YouTube to avoid a potential fine from the European Union (EU), Reuters reports.

As it stands, companies that advertise on the world’s biggest video-sharing platform need to use Google’s Ad Manager software to post ads.

That approach invoked the ire of the EU’s antitrust officials, who started investigating Google’s advertising technology in 2021.

The probe was intended to determine whether the company was giving itself an unfair advantage in digital advertising.

A source familiar with the matter told Reuters that Google and the EU had discussed a possible settlement.

That was supposedly in response to Google facing a fine of up to 10% of its global turnover.

The Internet giant reported revenue of $257 billion (R4.14 trillion) in 2021.

However, the EU is supposedly not completely convinced that opening up YouTube advertising to rivals would be a sufficient remedy.

Google would also have to make other changes to enhance competition in the digital ads space.

The EU is also looking into Google requiring advertisers to use its Display & Video 360 and Google Ads.

Google is also facing intense antitrust scrutiny in the UK.

The country’s Competition and Markets Authority has launched its second probe into its ad practices in the ad tech stack, which facilitates the sale of online advertising space between advertisers.

In May, US senators also filed a bipartisan bill seeking to break up the company’s ad business.

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Big change coming to YouTube ads