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Google faces a substantial fine of €2.95 billion (£2.5 billion) from the European Union, stemming from allegations of abusing its dominant position in the ad tech sector – the technology governing the placement and selection of online advertisements.
The European Commission announced on Friday that the technology giant had violated competition laws by prioritizing its own products in the display of online advertisements, to the disadvantage of its competitors.
This development occurs amid heightened scrutiny from regulators worldwide concerning Google’s expansive influence in online search and advertising.
In response, Google has stated to the BBC that the Commission’s decision is “wrong” and that it intends to appeal.
Lee-Anne Mulholland, global head of regulatory affairs at Google, asserted, “It imposes an unjustified fine and requires changes that will hurt thousands of European businesses by making it harder for them to make money.”
She added, “There’s nothing anti-competitive in providing services for ad buyers and sellers, and there are more alternatives to our services than ever before.”
Former US President Donald Trump also weighed in on the decision, denouncing it as “very unfair” in a social media post and threatening an investigation into European tech practices that could lead to tariffs.
He wrote, “As I have said before, my Administration will NOT allow these discriminatory actions to stand.”
Trump further stated, “The European Union must stop this practice against American Companies, IMMEDIATELY!”
Trump has been a frequent critic of the EU’s fines and enforcement actions against US tech firms in recent months, despite the fact that the US government has also initiated its own legal challenges regarding Google’s alleged monopoly in the online ad market.
Earlier in the week, the Commission refuted reports that it had postponed the announcement of Google’s fine due to trade-related tensions between the EU and the US.
In its official decision, the Commission accused Google of “self-preferencing” its own technology over that of its competitors.
The Commission’s findings indicate that Google intentionally favored its own advertising exchange, AdX, over competing exchanges where ads are bought and sold in real-time.
The Commission asserts that competitors and publishers faced increased costs and decreased revenues as a result, potentially leading to higher prices for consumers.
The regulator has mandated that Google cease these practices and pay the penalty of nearly €3 billion.
This fine ranks among the largest penalties imposed by the Commission on technology companies accused of violating its competition rules.
In 2018, Google was fined €4.34 billion (£3.9 billion) for allegedly using its Android operating system to solidify its position as the dominant player in that market.
Teresa Ribera, executive vice president of the Commission, stated on Friday that the regulator had considered previous findings of Google’s anti-competitive behavior when determining the higher fine.
“In line with our usual practice, we increased Google’s fine since this is the third time Google breaks the rules of the game,” she said.
Ms. Ribera also warned Google that it has 60 days to outline how it will modify its practices, or the Commission will consider imposing its own solution.
“At this stage, it appears the only way for Google to end its conflict of interest effectively is with a structural remedy, such as selling some part of its ad tech business,” she said.
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