What you need to know:

• Google’s parent company, Alphabet, has reportedly offered to allow other companies to place YouTube ad inventory, in response to a potentially very expensive antitrust investigation in Europe.
• Similar suggestions have been made locally, too. Rod Sims, former ACCC chair, said opening up YouTube was one option to ease competition concerns.

Google may crack the gates on part of its walled garden, reportedly offering to let rival companies place ads on YouTube in response to a European antitrust investigation.

The search and digital advertising giant made the offer, Reuters reported, to settle a potentially major antitrust case without paying a fine.

The European Commission opened an investigation into whether Google distorts competition by restricting third party access to user data for advertising purposes – but using the data itself. Its big stick is that it can charge up to 10 per cent of global turnover as a fine.

The EU competition watchdog has singled out Google’s requirement that advertisers use its own software – Google Ad Manager, Display & Video 360 and Google Ads – to place ads on YouTube. Both parties, the competition watchdog and Google, declined to comment on the story, Reuters reported.

YouTube is a relatively small part of the global Google business, posting US$6.9 billion (AUD$9.9bn) in sales revenue in the first quarter of 2022. Alphabet made US$68bn (AUD$97.8bn) in the quarter.

Google is facing investigations on a number of fronts, both in the US and globally, including one that alleges the company manipulated exchange results.  

Last year, former Australian Competition and Consumer Commission chair Rod Sims flagged opening up YouTube as one step that could be taken to ease competition concerns.