Google receives another billion-euro fine in Europe.
The European Commission is imposing a fine of 2.95 billion euros on Google for allegedly violating European fair competition rules. Google is said to dominate the advertising market too heavily, prioritizing its own services over those of competitors.
Preferential Treatment for Own Services
The case began in 2021 following a complaint from the European Publishers Council. Investigation revealed that Google had been favoring its own advertising platform AdX for years. This allowed the company to charge higher rates and gave competitors fewer opportunities. The Commission speaks of a violation that has been ongoing since 2014.
In addition to the fine, Google must submit a plan within sixty days to cease these practices. If it fails to do so, more severe measures will follow. According to Teresa Ribera, Vice President of the Commission, intervention is necessary “to prevent dominant players from abusing their power”.
Political Tensions
Google immediately appealed the fine, and it’s not because they can’t spare three billion euros. The tech giant reported a net profit of over $28 billion in Q2.
More important are the potential political consequences. According to Lee-Anne Mulholland, Head of Regulatory Affairs at Google, the decision will lead to “changes that will harm thousands of European businesses by making it harder for them to make a profit”. The US believes that Europe is cracking down too hard on tech giants. President Trump called the fine “unfair” and threatens new import tariffs against Europe.
In the US itself, Google is also under pressure. A federal judge ruled earlier this year that the company built an illegal advertising monopoly, writes Ars Technica. A separate lawsuit on this matter is still pending. The EU may go further and is even considering splitting up Google if the proposed solutions are insufficient.
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