Alphabet’s Google may face fresh antitrust scrutiny in the European Union after regulators raised concerns that the company could be inflating prices in its online advertising auctions.
In a letter to advertisers seen by Reuters, the European Commission said it is examining whether Google has been artificially increasing clearing prices in auctions for ads on Google Search, potentially harming advertisers.
The Commission has not opened a formal investigation but invited recipients of the letter to provide feedback by March 2.
Google said its advertising prices are determined through real-time auctions designed to prioritise relevance and ad quality.
“Ad prices are determined by a real-time auction designed to show people the most relevant ads, taking into account factors like advertiser competition and ad quality,” a spokesperson said.
Google has previously been fined billions of euros by EU regulators for antitrust violations. The U.S. Justice Department has also accused the company of manipulating ad auction mechanisms to favour its own revenue.
The European Commission declined to comment on whether a formal investigation would be launched.
