EU Penalizes Google with €2.95bn Fine for Abusing Ad Tech Dominance
The European Union has imposed a fine of €2.95 billion (£2.5 billion) on Google for allegedly abusing its power in the advertising technology sector. The European Commission announced the fine, stating that Google had breached competition laws by favoring its own products, thereby undermining competitors in the online ad market.
In response to the ruling, Google declared its intention to appeal, with a spokesperson claiming that the decision was 'wrong' and asserting that the fine would adversely impact thousands of European businesses. They argued that providing services to ad buyers and sellers is not anti-competitive, highlighting a growing range of alternatives available to clients.
US President Donald Trump also weighed in on the issue, criticizing the EU's decision as 'very unfair' and suggesting it may prompt his administration to investigate European tech practices regarding American companies. He called for an end to what he perceives as discriminatory actions against US firms.
The fine is not Google's first encounter with EU penalties over competition violations; it follows an earlier fine of €4.34 billion in 2018 regarding the Android operating system. Teresa Ribera, executive vice president of the Commission, indicated that the latest fine reflects Google's repeated violations of competitive rules and warned that further structural remedies might be necessary if Google does not comply with the order to rectify its practices.
Google was accused of 'self-preferencing' its advertising exchange, leading to higher costs and reduced revenues for competitors and publishers, which could ultimately affect consumers. The Commission is mandating that Google adjust its practices within 60 days to avoid further punitive measures.