Financial Services

Google Fined 220 Million Euros By France For Self-Preferencing Practices In Its Online Advertising Business, Influencing Competition Dynamics In The Digital Advertising Industry

The Business Research Company’s Digital Advertising Global Market Report 2021: COVID-19 Impact and Recovery to 2030

The French competition authority has imposed a fine on Google for unfairly forwarding business to its own services and discriminating against the competition. Google has not disputed this and has agreed to pay the fine of EUR 220 million, along with shutting down some of its self-preferencing practices. It remains interesting to see how this will influence the performance of Google in the global digital advertising services market, where it is one of the leading players along with Facebook, another tech giant from the US. This is also likely to influence competition dynamics of the market, given that it is growing significantly according to the latest forecasts on the digital advertising services market by The Business Research Company.

The competition authority had launched its investigation in 2019 based on a joint complaint from News Corp, French news publishing group Le Figaro, and Belgian press group Rossel. It found that the company’s ad server, which is used by several large online publishers to put up ad space for sale, gave an advantage in advertising auctions to AdX, the company’s online ad auction house, partly by making use of available information on competitor bids.


As per data on the Global Market Model, the digital advertising services market is expected to grow from $155.53 billion in 2020 to $179.77 billion in 2021 at a compound annual growth rate (CAGR) of 15.6%. The digital advertising services market size is expected to reach $281.32 billion in 2025 at a CAGR of 11.8%.

This is not the first time that Google is facing a fine for the charges of advertising abuse. In 2019, the company was fined EUR1.49 billion by the EU for blocking rival online search advertisers. It also faced a record fine of EUR4.34 billion by the EU competition authority in 2018 for using its popular mobile operating system Android to block rivals. Google has been on the radar of competitor companies for years, who have complained about its ownership of popular tools used for buying, selling, and auctioning ads, as well as owning and operating its own ad-supported products, alleging that it creates a conflict of interest. The French competition authority indicated that this penalty and the commitments promised by Google and made binding by the authority in its decision will help re-establish a level playing field for all players in the digital advertising space.

As per TBRC’s research on the digital advertising market, the internet user base expansion along with self-service advertising platforms is driving the global digital advertising market. The growing popularity of self-service advertising platforms is a key contributor to the digital advertising industry. Self-service advertising platforms are providing advertisers more convenience in the placement of their advertisements. The ease of being able to set up and administer their campaigns without the inconvenience of dealing with human intermediaries draws advertisers’ attention towards digital marketing. However, the growing use of ad blockers is expected to affect the business of online advertising service providers. Globally, more than 40% of internet users have reported using an ad blocker due to various reasons, including irrelevancy of advertisement, interruption, and deceptive promotions.

The Digital Advertising Services Global Market Report is one of a series of new reports from The Business Research Company that provides digital advertising services market overviews, analyzes and forecasts digital advertising services market size, share, digital advertising services market players, digital advertising services market segments and geographies, the market’s leading competitors’ revenues, profiles and market shares.

About The Author

Moïn has over a decade of experience in market research, analysis, and consulting. He has worked with some prominent market intelligence firms in India including Progressive Digital Media, Ovum, and GlobalData. At TBRC, he is involved in reporting insights on technology and media sectors, along with market data and trend analysis, and understanding competition dynamics. His project experience includes a market strategy study for an AI-based marketing software for telecom companies. He has worked for several clients including Amazon, Sony, Flytxt, Fujitsu, and several tech companies. He has a bachelor’s degree in Biotechnology and a postgraduate degree in management from IMI Belgium.

About The Global Market Model

The Global Market Model is the world’s most comprehensive database of integrated market information available. The ten-year forecasts in the Global Market Model are updated in real time to reflect the latest market realities, which is a huge advantage over static, report-based platforms.

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