Google Hit with €2.95 Billion Antitrust Fine by EU Commission Over Advertising Favoritism
The European Commission has imposed a fine of €2.95 billion ($3.47 billion) on Google for breaching EU antitrust rules by favoring its own advertising services over competitors.
According to the commission, Google’s practices amounted to an abuse of dominance in both its publisher ad server and ad-buying tools, specifically through the preference given to its ad exchange AdX. The commission has ordered Google to cease these self-preferencing practices within a 60-day period and take measures to eliminate inherent conflicts of interest along the adtech supply chain.
Teresa Ribera, the European Commission’s executive vice president for clean, just and competitive transition, stated that “Google must now propose effective remedies to address its conflicts of interest, or face strong penalties.” She emphasized the need for digital markets to serve people fairly and transparently.
In response, a Google spokesperson confirmed to The Wall Street Journal that the company would appeal the commission’s decision, arguing that providing services for ad buyers and sellers does not constitute anticompetitive behavior and that there are numerous alternatives to Google’s services available in the market.
The announcement was initially planned for September 1 but was delayed due to ongoing negotiations between the European Union and the United States over a potential trade deal. This fine is the second-largest antitrust penalty ever imposed by the EU (the largest being a $5 billion fine against Google in 2018).
The decision has drawn criticism not only from Google but also from U.S. President Donald Trump, who expressed concern over multiple antitrust fines and taxes imposed on American tech companies in a Truth Social post. He threatened to initiate a Section 301 proceeding if these “unfair penalties” continue to be imposed on tax-paying American corporations.
During a televised dinner with tech executives, including Google CEO Sundar Pichai and co-founder Sergey Brin, Trump praised his administration’s policies regarding AI. Meanwhile, Google seems to have secured an antitrust victory in the United States this week, as a federal judge ruled that the company had acted illegally to maintain a monopoly in online search, although the remedies fell short of Justice Department proposals for Google to sell Chrome and potentially Android.
