The European Commission has imposed a record €2.95 billion fine on Google, accusing the company of illegally undermining competition in the online advertising market by prioritising its own ad tech services over those of rivals.
The penalty, one of the largest ever handed down to a tech company by the EU, comes after regulators concluded that Google had unfairly used its dominant position to “self-preference” its AdX advertising exchange, giving it a competitive edge at the expense of publishers, advertisers, and alternative ad platforms.
EU: Google Abused Its Market Power
In its findings released Friday, the European Commission said Google’s actions harmed competition and innovation, increased operational costs for publishers, and possibly resulted in higher costs for consumers.
“Google placed its own ad tech services at an unfair advantage,” said Teresa Ribera, Executive Vice President of the Commission. “This conduct has not only hurt competition but also weakened the ability of publishers to monetise their content.”
The Commission ordered Google to cease the anti-competitive practices and gave the company 60 days to propose changes or face additional sanctions.
Ribera noted that the regulator is open to a “structural remedy”, including the potential divestment of parts of Google’s ad tech business, if voluntary compliance is not achieved.
Google Disputes Ruling, Plans to Appeal
In response, Google has rejected the Commission’s decision, arguing that its practices are lawful and benefit advertisers and publishers alike.
“This decision is wrong on the facts and the law,” said Lee-Anne Mulholland, Google’s Global Head of Regulatory Affairs, in a statement to journalists. “It imposes an unjustified fine and demands changes that would harm thousands of European businesses by making it harder for them to generate revenue.”
Mulholland added that Google’s ad services operate in a highly competitive market, pointing to the growing number of alternative platforms available to advertisers and publishers.
Third Strike for Google
This is the third major antitrust fine levied against Google by the EU in recent years:
- In 2018, the company was fined €4.34 billion for using its Android operating system to cement its dominance in mobile search.
- Another €2.42 billion fine was issued in 2017 for abusing its market power in online shopping comparisons.
Teresa Ribera confirmed that these previous violations were taken into account when calculating the current penalty.
“In line with our usual practice, we increased the fine because this is the third time Google has broken EU competition rules,” she said.
A Global Spotlight on Big Tech
The ruling adds to mounting pressure on global tech giants from regulators across Europe, the U.S., and beyond, as authorities ramp up efforts to rein in the power of digital monopolies.
The timing of the announcement had sparked speculation, with some reports alleging the fine had been delayed due to ongoing EU–US trade discussions. However, the Commission denied any political motivations.
U.S. officials, including former President Donald Trump, have frequently criticised the EU’s regulatory stance on American tech firms, calling the bloc’s actions unfair and politically motivated.
What Happens Next?
Google now has two months to respond with a detailed plan outlining how it will address the Commission’s concerns. Failure to do so could result in the EU mandating structural changes, including forced divestiture of parts of its lucrative advertising business.
The appeal process is expected to take months, if not years, but in the meantime, the tech world and regulators will be watching closely.
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