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Changing Face of Security

French Watchdog Launches Online Ad Inquiry With Google in Its Sights

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May 23, 2016, 2:39 PM ET
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This picture taken on December 10, 2013 shows Google's logo at the Google cultural hub in Paris. The Lab is a place in the French capital designed to enable artists, museums, foundations and other cultural players to meet the US giant's engineers and gain access to its technology. France's culture minister on December 10 cancelled her attendance at the Paris launch of the Google cultural hub at the last minute, in a snub to the US giant over data protection and other issues. AFP PHOTO/JOEL SAGET (Photo credit should read JOEL SAGET/AFP/Getty Images)Joel Saget — AFP/Getty Images
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The French competition authority launched an inquiry on Monday on the exploitation of Internet users’ data for the online advertising industry, putting major personal data collectors such as Alphabet’s Google (GOOGL) in its sights.

The inquiry, which includes a public consultation starting early next year, will result in non-binding recommendations but may become the basis of a formal antitrust investigation if infringements are observed.

“Can everyone access these data, which are fundamental inputs of this business activity? Are there exclusion strategies being put in place?” Bruno Lasserre, president of the France’s antitrust regulator, told a press conference.

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Google, the world’s most popular Web search engine, collects data globally from Internet users and companies via the free professional and personal services it offers online and on smart mobile devices.

Its mobile operating system, Android, can be found on about 80% of smart mobile devices, EU data shows.

This means Google has a “privileged position” in terms of data collection, said Mathieu Guennec, the French competition authority’s lead investigator.

Guennec also cited Google’s presence on both the buy-side and sell-side of the online advertising business through different platforms, raising questions about the market power the U.S. company could draw from this integrated approach.

No one at Google in France was immediately available for comment.

For more about Google’s past run-ins with the European Union over antitrust allegations, watch:

Other big data collectors cited in the French regulator’s written presentations included Facebook (FB) and Twitter (TWTR).

The French competition authority’s announcement comes a month after the European Union charged Google with using Android to squeeze out rivals.

Google also faces its first EU antitrust sanction this year over allegations that its Web search results favor its own shopping service, people familiar with the matter said in April.

Separately, Germany’s cartel office said in March that it was investigating Facebook for suspected abuse of market power over breaches of data protection laws.

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