European regulators have launched an investigation into a clandestine advertising arrangement between Google in Alphabet Inc.
What Happened: The European Commission is delving into advertising campaigns that promoted Instagram to teenagers on YouTube. In October, regulators requested Alphabet, Google's parent company, to provide data, presentations, and internal communications related to these campaigns, according to sources familiar with the matter. This inquiry follows a Financial Times report on Tuesday, which highlighted the controversial partnership.
The investigation, internally dubbed "Tangerine Owl," uncovered that Google employees had advised Meta on how to bypass Google's ad policies for minors. Despite Google's prohibition on ad personalization for teenagers, the campaign targeted users categorized as "unknown," a group predominantly comprising individuals under 18.
After a Financial Times investigation in August, Google has strengthened its policies, prohibiting demographic targeting of the "unknown" group and mandating staff to acknowledge their responsibilities. The campaign, initially piloted in Canada and later expanded to the US, was eventually terminated.
Both Google and Meta continue to face increasing scrutiny from regulators and politicians, with ongoing investigations and legal challenges in both the US and Europe.
Why It Matters: The investigation into Google and Meta's advertising practices comes amid heightened regulatory scrutiny over tech giants' handling of user data and advertising practices. In August, allegations surfaced that Google and Meta secretly targeted Instagram ads to teenagers on YouTube, violating Google's own policies regarding minors. The campaign reportedly targeted a user group labeled as "unknown," which Google knew was predominantly under-18s.
In a related development, Google recently won an appeal against a €1.49 billion ($1.66 billion) antitrust fine imposed by the European Commission for anticompetitive practices in its online search advertising business. The Luxembourg-based General Court nullified the penalty, providing a reprieve to Google. This backdrop of legal challenges underscores the ongoing tension between tech giants and regulatory bodies in Europe.
