Alphabet’s Google has been slapped with a 2.95-billion-euro ($3.45 billion) fine by European regulators, marking its fourth major penalty in a decade-long antitrust battle with the European Union. The ruling targets Google’s adtech business, accusing the company of favoring its own services over competitors and harming online publishers.
The European Commission said Google’s practices, in place since 2014, demonstrated a clear abuse of market power. The company allegedly prioritized its own online display technology in a way that disadvantaged rivals, distorting competition and limiting choice for advertisers and publishers alike.
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Officials have ordered Google to halt these self-preferencing practices and address its inherent conflicts of interest. The company has 60 days to outline how it intends to comply, with regulators hinting that failure to propose “serious remedies” could trigger even stricter measures. The Commission also suggested that Google may ultimately be required to divest portions of its adtech operations, though that step is contingent on the company’s compliance efforts.
“Digital markets exist to serve people and must be grounded in trust and fairness,” the EU warned, emphasizing that dominant players cannot be allowed to exploit their position to the detriment of others.
Google has swiftly rejected the decision, pledging to appeal in court. Company representatives argued that the fine is unwarranted and could harm thousands of European businesses by complicating how they buy and sell advertising. They stressed that the adtech market is increasingly competitive, offering multiple alternatives for both buyers and sellers, and that Google’s services do not unfairly stifle competition.
This latest sanction follows a series of fines: a record 4.3-billion-euro penalty in 2018, 2.42 billion euros in 2017, and 1.49 billion euros in 2019, reflecting the EU’s long-standing scrutiny of Google’s market dominance. The penalties collectively underscore ongoing tensions between regulatory authorities seeking fairer competition and tech giants defending their business models.
The timing of this fine comes amid broader geopolitical friction. Concerns over the impact on U.S.-EU trade relations had delayed an earlier announcement, illustrating how antitrust enforcement is increasingly intertwined with global economic considerations. For Google, the ruling represents not only a significant financial hit but also a call to alter how it manages its ad technology empire, potentially reshaping digital advertising markets across Europe.
