The European Union has imposed a €2.95 billion ($3.5 billion) fine on Google after ruling that the tech giant abused its dominance in the digital advertising market by favoring its own services over those of competitors.
The penalty marks Google’s fourth multibillion-euro antitrust fine from the bloc.
In addition to the fine, the European Commission, the EU’s executive arm and top competition watchdog — ordered Google to end “self-preferencing” practices and take steps to eliminate “conflicts of interest” within its advertising technology supply chain.
“Google’s illegal practices harmed advertisers, publishers, and ultimately consumers”, said Teresa Ribera, the Commission’s executive vice president overseeing competition policy. “Advertisers faced higher marketing costs, which were passed on to consumers, while publishers suffered lower revenues.”
The Commission warned that if Google fails to propose a “viable plan” within 60 days, it will consider imposing a structural remedy, including the potential forced sale of parts of Google’s AdTech business.
Google swiftly rejected the ruling, calling the decision “wrong” and vowing to appeal.
In a statement, Google’s global head of regulatory affairs, Lee-Anne Mulholland, said, “It imposes an unjustified fine and requires changes that will hurt thousands of European businesses by making it harder for them to make money”.
The ruling follows a two-year investigation into Google’s advertising practices and underscores the EU’s growing assertiveness in regulating Big Tech. Previous EU fines against Google, totaling more than €8 billion, have targeted its search engine practices, Android dominance, and online shopping service.
The decision is also expected to fuel tensions between Washington and Brussels, as the U.S. has previously criticized the EU’s aggressive regulatory stance on American tech giants.
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