EU vs Google: The tech giant loses billions in favor of advertisers

In 2017, the landscape of online marketing experienced a seismic shift. Google, a titan in search and online advertising, faced a record-breaking fine of €2.4 billion from the European Commission for abusing its monopoly position. This ruling, deemed “illegal under EU competition rules,” served as a catalyst for new opportunities for online retailers.

Google’s monopolistic practices and EU intervention

Before the European Commission’s decision, Google operated its search results page with an advertising platform known as Google Shopping. This system was exclusively accessible to online stores, disadvantaging other entities, particularly Comparison Shopping Services (CSS), from competing fairly. After prolonged proceedings and pressure from the EU, Google was compelled to alter its approach, under threat of even steeper penalties—potentially around 5% of its annual global revenues.

The emergence of comparison shopping service (CSS)

In response to the European Commission’s ruling, Google launched the Comparison Shopping Service (CSS) program to diversify product listing ads (PLAs), often referred to as “shopping ads” or “Google Shopping.” This move paved the way for new possibilities for retailers and price comparison service providers to compete fairly in the market.

Benefits for retailers

The new CSS system offers significant advantages for retailers. Sellers who transition to using CSS platforms can save up to 20% on advertising costs. This cost-saving effect stems from the legal mandate against Google, which forced the company to grant price comparison services access to its system. Consequently, these comparison services can work with a margin and sell clicks to the websites of their advertisers.

Advertising cost savings

With Google required to comply with the European Court’s decision, it must also allow other price comparison services access to its system. This enables retailers to continue advertising in the same manner while retaining a margin of up to 20%. Therefore, advertisers can achieve 20% more results with the same budget.

EU vs Google: The tech giant loses billions in favor of advertisers - - 1

How you can benefit

If you’re looking to efficiently and cost-effectively enhance the visibility of your products online, consider the advantages of using a platform like verteco Shop. This platform offers the opportunity to achieve a 20% more effective cost-per-click (CPC), allowing you to gain 20% more traffic without increasing your ad spend. Verteco Shop can help you achieve better results in your marketing efforts at the same cost. Visit www.verteco.shop and start leveraging the benefits that the EU has made possible!

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