EU Fines Google $3.5 Billion for Antitrust Violations in Ad Tech

The European Commission has imposed a fine of €2.95 billion (approximately $3.45 billion USD) on Google, accusing the company of abusing its dominant position in the online advertising technology market and giving unfair priority to its own display advertising services. Regulators have ordered Google to put an end to these practices.

What’s changing?
The Commission has required Google to address conflicts of interest within its ad tech supply chain and to stop granting itself “self-preferencing.” The company has been given 60 days to respond.

EU Competition Commissioner Teresa Ribera commented:

“Today’s decision confirms that Google abused its market dominance in advertising technologies, harming publishers, advertisers, and consumers. Such behavior is illegal under EU antitrust law.”

Background
The ruling follows a 2018 decision in which the Commission also found Google in violation of EU antitrust rules, suggesting that a forced divestiture of certain assets might be the only effective solution.

Google’s response
Google has rejected the penalty, calling it unjustified. Lee-Ann Mulholland, the company’s Head of Global Regulatory Affairs, argued that the decision would force changes that could harm thousands of European businesses and reduce their profitability. The company has confirmed it will appeal.

Why it matters
It remains unclear whether this decision could lead to a breakup of Google’s advertising division or other business units. Analysts note that, judging by past cases in the United States, even after Google was found to hold a monopoly, few substantial measures were actually enforced.

US reaction
Following the announcement, former U.S. President Donald Trump threatened to launch a trade investigation, vowing to “reverse” what he described as discriminatory EU sanctions targeting American tech giants such as Google.