The European Commission has imposed a €2.95 billion fine on Google, ruling that the company abused its market power in digital advertising. Regulators said Google violated EU competition law by giving its own ad exchange, AdX, preferential treatment both in publisher ad servers and in advertiser tools.
EU orders Google to change its ad practices
The Commission said Google has 60 days to end these “self-preferencing practices” and introduce safeguards to eliminate conflicts of interest in the ad supply chain.
Specifically, regulators demand that Google:
- Stop favoring AdX within publisher ad servers
- Eliminate self-preferencing in its advertiser tools
- Present a detailed package of remedies within 60 days
- Prevent future conflicts of interest in the ad supply chain
Commission Vice President Teresa Ribera stated:
“Google must present a serious remedy package. If not, we won’t hesitate to impose tougher measures. Digital markets must be built on trust and fairness.”
Google plans to appeal
Google has already announced it will appeal the decision. A company spokesperson argued that offering services to both buyers and sellers is not anti-competitive and stressed that multiple alternatives exist in the advertising market.
One of the biggest EU antitrust fines
The €2.95 billion penalty is the second-largest antitrust fine the EU has ever issued to Google. In 2018, the company was fined €5 billion for abusing dominance in the Android ecosystem. This marks the fourth multi-billion euro fine since 2017, underlining Brussels’ ongoing scrutiny of the tech giant.
Political pushback from Washington
The decision also triggered political backlash in the United States. President Donald Trump criticized the ruling on Truth Social, calling it unfair and harmful to American investment and jobs. He even threatened to launch a Section 301 trade investigation to counter the EU’s penalties.
Fine adds tension to EU–US trade talks
The timing of the decision, coming while Brussels and Washington are negotiating a new trade deal, has drawn attention. With mounting fines and political resistance, Google now faces not only financial penalties but also rising diplomatic friction between the EU and the US.
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