EU Fines Google €2.95 Billion Over Antitrust Violations: The Largest Fine Yet Against Tech Giant
The European Commission has imposed a fine of €2.95 billion on Google, equivalent to approximately $3.5 billion, for breaching EU antitrust rules. The commission determined that Google had unfairly favored its own advertising services, specifically its ad exchange AdX, in both its publisher ad server and ad-buying tools.
The commission stated that Google had abused its dominant market positions, necessitating the company to cease these self-preferencing practices within a 60-day period. Google must also take measures to eliminate inherent conflicts of interest along the adtech supply chain.
Teresa Ribera, the commission’s executive vice president for clean, just, and competitive transition, emphasized in a statement that digital markets should serve people and be based on trust and fairness. In cases where markets fail, public institutions must act to prevent dominant players from misusing their power.
In response, a Google spokesperson stated that the company would appeal the commission’s decision, asserting that there is nothing anticompetitive about providing services for ad buyers and sellers, and that there are currently more alternatives to their services than ever before.
The announcement was initially scheduled for September 1 but was delayed due to ongoing negotiations between the European Union and the United States over a potential trade deal. This fine is the EU’s second largest antitrust penalty, following a $5 billion fine against Google in 2018.
Criticism of the decision was not limited to Google, with U.S. President Donald Trump voicing his disapproval on Truth Social, complaining about “the many other fines and taxes imposed on American Tech Companies.” The president threatened to initiate a Section 301 proceeding to nullify the alleged unfair penalties levied against these companies.
During a televised dinner with tech executives last Thursday, including Google CEO Sundar Pichai and Google co-founder Sergey Brin, Trump praised his administration’s policies, particularly those pertaining to AI.
Meanwhile, in the United States, it appears that Google secured an antitrust victory this week. Although a federal judge previously ruled that the company had acted illegally to maintain a monopoly in online search, the remedies suggested fell significantly short of the Justice Department’s proposals for Google to sell Chrome and potentially even Android.
