The European Commission has imposed a €2.95 billion ($3.45 billion) fine on Google for breaching EU antitrust rules by distorting competition in the advertising technology industry. This marks the fourth major EU sanction against the tech giant since 2017.
Key Findings
The Commission’s investigation revealed that Google abused its dominant position by favoring its own advertising services, particularly its AdX ad exchange, over those of competitors. This “self-preferencing” practice was found to harm competition, inflate costs for advertisers and publishers, and potentially raise prices for consumers.
Required Actions
In addition to the financial penalty, Google has been ordered to cease these self-preferencing practices. The company must submit a plan within 60 days outlining how it intends to eliminate conflicts of interest in its ad tech operations. Failure to comply could result in further actions, including the potential divestment of parts of its ad tech business.
Global Context
This decision aligns with similar actions taken by other regulatory bodies. The U.S. Department of Justice has also called for a breakup of Google’s ad tech division over antitrust concerns. In response to the EU’s ruling, former U.S. President Donald Trump condemned the fine as unfair and threatened retaliatory tariffs on European goods, citing potential harm to American jobs and investments.
Google’s Response
Google has announced plans to appeal the European Commission’s decision, arguing that the fine is unjustified and that the proposed changes would harm European businesses by limiting their ability to earn revenue. The company maintains that its advertising services have helped the region’s digital economy grow.
