The European Union is not expected to order a breakup of Google's lucrative advertising technology business in the near future, despite previous warnings from antitrust officials, according to sources familiar with the matter reported by Reuters.

EU competition regulators are preparing to issue a decision in the coming months regarding Google's alleged anti-competitive practices in its adtech business. While the ruling is likely to include a substantial fine, sources indicate that a breakup order is now considered unlikely due to the complexity involved.

Margrethe Vestager, the EU's antitrust chief, had previously threatened to break up Google's adtech business, which would have been an unprecedented move in an antitrust case. However, competition officials are now leaning towards less drastic measures, the sources said.

A spokesperson for the European Commission declined to comment on the matter, as did a representative from Google.

The decision reflects the challenges regulators face in addressing concerns about Google's dominance in the digital advertising market. In 2023, Google's advertising revenue, which includes income from various services such as search, Gmail, and YouTube, amounted to $237.85 billion, accounting for 77 per cent of the company's total revenues.

Vestager had previously suggested that Google could be required to sell its sell-side tools, DFP and AdX, due to potential conflicts of interest with its ad buying tools, Google Ads and DV360. The company has been accused of illegally favouring its own ad exchange, AdX, in matching auctions since 2014.

While a breakup order may be off the table for now, sources indicate that such a measure could still be considered in the future if Google continues to engage in anti-competitive practices. They pointed to a precedent-setting case involving Microsoft two decades ago as an example.

The EU's decision is unlikely to be finalised before Vestager leaves office in November, although it remains theoretically possible, according to the sources.

Google has already faced significant regulatory scrutiny in Europe, having incurred €8.25 billion in EU antitrust fines over the past decade.

The company is also currently facing an antitrust trial in the United States, where the Department of Justice alleges that Google sought to monopolise markets for publisher ad servers and advertiser ad networks, while also attempting to dominate the market for ad exchanges.

As the EU prepares its ruling, the global tech industry continues to watch closely, recognising the potential impact on the digital advertising landscape and the precedent it could set for future antitrust cases in the sector.

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