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European media companies are still struggling to edge Google out of their online ads dominance by blocking their ability to harvest user data on their media sites. Google is not having it, however, and has threatened to cut off these companies from their access to ad revenue.
The masterminds at Google have perfected data mining to propel advertising sales, and they don’t like being told no. The tech giant is once again under scrutiny for using their corporate heft to keep doing things their way, despite another dispute with European media companies.
While Google and these companies have claimed they are still negotiating, Google sits firmly at the lead of the $100 billion annual global banner ad market. They have unparalleled access to advertisers and enough ad tools that they are nearly essential to anyone hoping to generate ad income.
The group of European publishers had scheduled to begin blocking Google’s data collection and storage as of August 1, to level the playing field in the lucrative online advertising game.
Google’s glut of user data has made it easier and faster to target an audience, though this has led to questions of anti-competitiveness on Google’s part.
“You have to basically implement what [Google] expects from you or you’re out of the market – you can’t do without them,” said Thomas Adhumeau, general counsel at S4M, which competes with Google in software for advertisers, Reuters reports.
When the EU put the General Protection Data Protection (GDRP) in place two years ago, they required a user’s permission to track and use their data, leading to all the pop ups announcing various websites’ use of cookies. Then, the consortium Google is a member of, the Interactive Advertising Bureau of Europe (IAB), created a protocol for procuring user’s permission to track their online activities.
It’s no secret that Google has us coming and going. Their data mines are rich with information, and other media companies have to share part of their revenue with Google to access information to target their ideal audience. On August 15, the Transparency and Consent Framework (TCF) requested by the IAB would request two separate permissions for users – one to show personalized ads to media users and one to collect their personal data.
Some of the other media companies are talking about opting out of the second request, in order to cut Google out of the loop.
They will also be forgoing Google’s access to advertisers.
It is still up in the air whether or not regulatory agencies in the U.S., the U.K., the E.U., and Australia will pursue action against Google, but for now the company claims it is merely competing in a cutthroat market – and winning.
