European regulators on Wednesday said they may order Google parent Alphabet to break up its digital advertising business amid concerns over anti-competitive practices. The move by the European Commission adds to U.S. regulatory pressure on GOOGL stock.
Google also faces U.S. Department of Justice antitrust charges related to its advertising and search businesses.
The European Commission, the executive branch of the 27-nation bloc, said Google has abused its dominant role in the buying and selling of online ads across third-party websites and apps to drive business to its own advertising platform. The commission said its "preliminary view" is that Google must sell off parts of its ad-tech business to resolve the issues. But Google will have an opportunity to respond to the charges.
Due to its huge cash holdings, Google stock has shrugged off three fines totaling $9.3 billion levied by the European Union on antitrust grounds.
GOOGL stock edged down a fraction to close at 123.67 on the stock market today. Google stock has advanced 38% in 2023.
Regulatory Pressure Ramps On GOOGL stock
In January, the Justice Department filed antitrust charges against Google, leaving open the question of whether the search giant will have to divest some of its ad business in order to satisfy U.S. regulators.
The lawsuit marked the Justice Department's second antitrust case against the internet giant in just over two years.
In October 2020, the Justice Department filed an antitrust lawsuit charging that Google has monopolized internet search and search-related advertising. That case is scheduled to go to trial in September.
In addition to probing Google's ad business, European regulators fined Google $5 billion in 2018, charging that the internet giant has used its Android mobile phone operating system to bully smartphone makers.
Google stock has advanced in 2023 despite rising competition in artificial intelligence. But GOOGL stock is extended from a buy zone.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
