Google fined €2.95bn by EU over ad-tech antitrust abuses

The company has 60 days to propose remedies or face tougher measures

The EU has fined Google €2.95 billion ($3.5bn) for abusing its dominance in digital advertising, marking the fourth time Brussels has penalised the US tech giant for anti-competitive practices.

The European Commission announced the decision on Friday, saying Google had breached EU rules by giving unlawful preference to its own advertising technology services over those of rivals.

The case centred on Google's AdX exchange and DFP ad platform – tools that connect online publishers with advertisers.

Regulators found that the company "abused its power" since at least 2014, to the detriment of competitors, advertisers, and publishers, ultimately harming European consumers through higher prices.

Commission executive vice-president Teresa Ribera, who oversees competition affairs, said Google's "illegal practices" forced advertisers to pay more for marketing campaigns, costs that were likely passed on through higher prices for goods and services.

Publishers, including news outlets, meanwhile received less revenue, which Ribera said could have resulted in higher subscription fees.

The Commission ordered Google to end its "self-preferencing practices" and address "conflicts of interest" across the advertising technology supply chain.

The company has 60 days to propose remedies or face tougher measures.

"At this stage, it appears that the only way for Google to end its conflict of interest effectively is with a structural remedy, such as selling some part of its Adtech business," Ribera warned.

But the Commission first wants to hear and assess Google's proposal.

"Once received, the Commission will thoroughly assess them to see if they eliminate the conflicts of interest. Should they not, subject to Google's right to be heard, the Commission will proceed to impose an appropriate remedy," the Commission said.

Google rejected the ruling, describing it as "wrong" and pledging to appeal.

"It imposes an unjustified fine and requires changes that will hurt thousands of European businesses by making it harder for them to make money," said Lee-Anne Mulholland, Google's global head of regulatory affairs.

The decision comes more than two years after Brussels issued formal antitrust charges and nearly four years after launching its in-depth probe into online display advertising in June 2021.

It also highlights deepening transatlantic tensions over technology regulation, with the US Justice Department pursuing a parallel case against Google's AdX and DFP businesses. The EU said its findings would be relevant to those proceedings.

Whilst a US district judge ruled out last week a forced sale of Google Chrome, the judge left the door open to other remedies, with hearings scheduled later this month.

Friday's fine adds to a growing list of penalties against the Silicon Valley company in Europe. In 2019, Google was fined €1.49bn for blocking rival firms from placing search ads on publishers' sites.

In 2018, it was ordered to pay €2.42bn for abusing its dominance in online shopping searches. A year earlier, the Commission imposed a record €4.34bn penalty over its practices on Android mobile devices.

Authorities in the UK and Canada have also opened investigations into Google's conduct in the ad-tech sector.