A PYMNTS Company

EU Competition Chief Signals Potential Google Breakup Amid Big Tech Scrutiny

 |  December 5, 2024

Teresa Ribera, the EU’s newly appointed competition chief, has indicated that breaking up Google could remain a viable option in the bloc’s ongoing efforts to curb Big Tech’s market dominance. The Spanish socialist, who began her five-year term this week, expressed her intention to collaborate closely with international regulators, including those in the United States, to address concerns over monopolistic practices.

In an interview with Bloomberg Television, Ribera emphasized that divestments, which have been proposed by both her predecessor Margrethe Vestager and the U.S. Department of Justice, could serve as a tool to ensure fair competition. “It’s something that is of course on the table,” Ribera stated, adding that decisions will be made on a case-by-case basis. She highlighted the importance of considering potential splits within Google’s operations, particularly in sectors where its dominance is most pronounced.

Ribera’s approach reflects continuity with the policies of Vestager, who frequently clashed with Silicon Valley during her tenure. Vestager had previously floated the idea of breaking up Google’s advertising technology business as a means of addressing its outsized influence in the digital advertising market. Meanwhile, U.S. authorities have called for broader divestments, including the potential sale of Google’s Chrome browser, as part of a strategy to mitigate the company’s alleged control over online search and browsing.

Strengthening International Cooperation

Ribera underlined her intention to build partnerships with competition authorities across the globe, particularly in the U.S., where antitrust enforcement has intensified. The collaboration is seen as critical in tackling the borderless nature of Big Tech’s operations. “We try to work together with other relevant competition authorities worldwide,” she told Bloomberg.

Read more: Google Allegedly Encouraged Evidence Destruction to Dodge Antitrust Scrutiny: Report

Her role comes with significant clout, as she oversees not only competition policy but also the EU’s ambitious Green Deal, an economic transformation plan aimed at achieving carbon neutrality by 2050. This dual responsibility highlights the challenges ahead as Ribera balances tech regulation with the broader economic pressures facing the bloc, including concerns over de-industrialization.

Navigating Tensions with Washington

Ribera’s tenure also coincides with the arrival of President Donald Trump’s new administration, which has historically accused Europe of unfair trade practices and threatened retaliatory measures. Large penalties against U.S. tech firms could escalate tensions, potentially leading to a trade conflict. Ribera pledged to focus on fostering dialogue, telling Bloomberg she aims to “build bridges” with the U.S. leadership while advancing the EU’s regulatory agenda.

As Ribera assumes one of the most influential roles in the European Commission under President Ursula von der Leyen’s administration, her ability to navigate both domestic and transatlantic challenges will shape the trajectory of the EU’s stance on Big Tech and its broader economic policies.

Related: Bloomberg