EU slaps Google with €2.95bn fine over Ad tech monopoly

The European Union has hit Google with a €2.95 billion penalty for allegedly misusing its dominance in the online advertising technology sector. The punishment comes after the Commission found the company unfairly prioritizing its own ad services over competitors.

According to the European Commission’s decision made public last Friday, Google unlawfully favored its proprietary tools in managing digital ads, disadvantaging rival platforms and limiting market competition.

Google’s spokesperson dismissed the verdict as mistaken and voiced intentions to challenge the ruling. Lee-Anne Mulholland, the company’s global regulatory affairs lead, stressed that this penalty is unwarranted and will create obstacles for thousands of European businesses trying to generate revenue. She emphasized there are more choices than ever for advertisers and publishers, asserting that the company’s practices are not anti-competitive.

In Washington, President Donald Trump condemned the EU’s action on social media, calling it “very unfair”. He warned of a potential investigation into European regulatory tactics that could impose tariffs on imports. Trump has often criticized the bloc’s enforcement against U.S. technology firms, though the American government is also pursuing its own legal battles regarding Google’s ad market control.

The ruling centers on Google’s alleged preference for its own advertising exchange, AdX, which buys and sells ads in real time. The Commission stated that this strategy led to inflated costs for competitors and publishers, which may have ultimately harmed consumers through higher prices.

In 2018, the company was fined €4.34 billion for exploiting its Android operating system to maintain dominance. Teresa Ribera, European Commission vice president, noted the cumulative effect of repeated violations in deciding the amount of the latest fine, calling it a response to Google’s persistent disregard for competition rules.

Ribera warned Google it has 60 days to propose solutions to end the conflict of interest, suggesting that a structural change, such as divesting part of its ad tech business, may be required to resolve the issue.