The European nation is justified in its case against Google because it aims to protect other consumers and ensure the dominant companies do not distort or prohibit competition. Google provides online real-time advertisement information between the advertisers and publishers and uses its open bidding program to operate it (European Commission). On the other hand, Meta has an online advertisement display using its “Meta Audience Network,” which uses rivals and Google’s advertising technology to market them. In 2018, the two companies came together and formed a “Jedi Blue” agreement whereby they merged the two services of Goggle’s “Open Bidding Programme” and Meta’s “Meta Audience Network.” This implies that other rivals will have to depend on Google and Meta to publish their advertisements, making them a monopoly in the industry against the EU trade rules in the region.
The EU’s action is essential in the market because they avoid monopoly. When there is a monopoly, the two companies will be able to control the advertising services and prices and may use them to their own advantage. These are the effects of absolute advantage theory, whereby if each country produces what they are best in, they may sometimes use the products they produce to influence other counties (Hill 179). Therefore, the EU should ensure competition in the advertising industry to avoid monopoly and ensure that each consumer has an equal chance of advertising their products on online platforms.
EU protects consumers by helping them against extortion by several monopoly companies. For instance, when Google and Meta control the online advertising platform, they can influence some products and the consumers impair their judgement. Therefore, the EU must ensure that consumers have various products to choose from without influence from these dominant corporations (Hill 171). This way, consumers will have the freedom to choose products from different companies that satisfy their needs and at varying prices according to their budget.
Works Cited
European Commission. “Press Corner.” European Commission – European Commission, Web.
Hill, Charles W. L. Global Business Today. 12th ed., Mcgraw Hill Llc, 2022.