The European Commission has fined Google €2.95 billion (nearly $3.5 billion), ruling that the company violated EU antitrust laws by favoring its own advertising tools over those of its rivals. Regulators stated that Google abused its market dominance by giving preferential treatment to its ad exchange, AdX, within both its publisher ad server and its ad-buying tools. The Commission has ordered the company to cease these practices within 60 days and implement measures to address what it calls “inherent conflicts of interest along the adtech supply chain.”
Teresa Ribera, the Commission’s executive vice president, emphasized that “digital markets exist to serve people and must be grounded in trust and fairness.” She added, “Google must now come forward with a serious remedy. If it fails to do so, we will not hesitate to impose strong remedies.”
Google to Appeal and Political Reactions
In response, Google announced it would appeal the decision, arguing that its services are competitive. A company spokesperson told The Wall Street Journal, “There’s nothing anticompetitive in providing services for ad buyers and sellers, and there are more alternatives to our services than ever before.” The fine, reportedly delayed from September 1 due to EU-US trade deal negotiations, is the bloc’s second-largest antitrust penalty, surpassed only by the $5 billion fine imposed on Google in 2018.
The ruling has drawn criticism from US President Donald Trump, who denounced the EU’s actions against American tech companies like Google and Apple. On Truth Social, Trump wrote, “We cannot let this happen to brilliant and unprecedented American Ingenuity,” warning he could initiate a Section 301 proceeding to nullify what he called “unfair penalties.” Following this, Google CEO Sundar Pichai and co-founder Sergey Brin, along with other tech leaders, publicly praised Trump’s policies, particularly those concerning artificial intelligence.
This week also saw developments in Google’s ongoing US antitrust battle. A federal judge ruled that the company had illegally maintained a monopoly in search but rejected the Justice Department’s proposals that Google be forced to divest Chrome or Android. This decision was seen as a partial victory for the company.
