Google Will Meet EU’s Ad Tech Business Deadline After $3.5 Billion Fine: Report

Alphabet Inc.’s (GOOG) (GOOGL) Google will reportedly meet the European Union’s deadline for its proposed changes to the company’s advertising technology business.

According to a report by Bloomberg citing people familiar with the matter, Google’s changes will not include the scope of modifications sought by the EU. This comes after the EU imposed a $3.5 billion fine on the search and advertising giant.

Alphabet’s shares were up 0.37% in Friday’s pre-market trade. Retail sentiment on Stocktwits around the company was in the ‘neutral’ territory.

Google’s offer will avoid the complete sale of its Ad Manager division, which comprises the AdX exchange and DoubleClick for Publishers. The company is expected to make the offer in November, but the filing deadline could slip, according to the report.

Earlier this month, the EU’s antitrust chief, Teresa Ribera, said Google abused its dominant position in advertising technology. “This behaviour is illegal under EU antitrust rules. When markets fail, public institutions must act to prevent dominant players from abusing their power. True freedom means a level playing field, where everyone competes on equal terms and citizens have a genuine right to choose,” Ribera said.

Lee-Anne Mulholland, Google’s vice president for regulatory affairs, said the company would appeal the fine, saying that the fine is unjustified and the changes sought by the EU would “hurt thousands of European businesses by making it harder for them to make money.”

Google had previously considered selling parts of its adtech business to resolve antitrust concerns.

GOOGL stock is up 33% year-to-date and 58% over the past 12 months.

Also See: Pattern IPO To Debut On Nasdaq Today: E-Commerce Accelerator Raises $300 Million At $2.5 Billion Valuation

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