European antitrust regulator threatens breakup of Google's ad tech business (update)
Alex Wong
Update 11:25am: Adds Google comment.
Google (NASDAQ:GOOGL) was accused by the European Union of using its alleged dominance in advertising technology to hurt competitors, and the search giant may be forced to sell parts of the business to appease regulators. 
The European Commission informed Google of its preliminary view that the company breached EU antitrust rules by "distorting competition" in the advertising technology industry, according to a statement from the regulator on Wednesday. The EC takes issue with Google favoring its own online display advertising technology services over competitors. 
The regulator said that its preliminary review indicates that "a behavioral remedy" is unlikely to be effective in this case.
"The Commissionâs preliminary view is therefore that only the mandatory divestment by Google of part of its services would address its competition concerns," the regulator said in the statement.
Google responded to the EC's statement of objections in a blog post. 
"Todayâs Statement of Objections from the European Commission sets out claims that are not new and relate to a narrow part of our advertising business," Dan Taylor, vice president, global ads, wrote in the post. "It fails to recognize how advanced advertising technology helps merchants reach customers and grow their businesses â while lowering costs and expanding choices for consumers."
Bloomberg first reported about the complaint on Monday, saying that European Union authorities are set to charge Alphabet (GOOGLE) with "massive new fines" over its advertising business. The report said the search giant may be hit with about â¬8 billion ($8.6 billion) in penalties due to alleged anti-competitive practices in its ad tech business model.
Google (GOOGL) was previously slapped with a â¬4.34 billion charge due to practices pursued in its Android business, which was later lowered to â¬4.125 billion. Google continues to fight the fine in the European courts.
More on Google

Google Stock: AI Revolution Seems Fully Priced In
Google: Search And AI, Not Search Or AI
Google's ad-tech antitrust suit headed for federal courtroom next March
Google reportedly offers ad-tech split-up in defense against new DOJ suit