This week, the European Commission revealed it is imposing a €2.95 billion fine on Google, which is just shy of $3.5 billion.
According to the commission, Google breached EU antitrust laws by giving preferential treatment to its own advertising platforms. More specifically, the commission stated that Google “misused” its “dominant positions” by advantaging its AdX ad exchange within both its publisher ad server and ad-buying services.
In addition, the commission instructed Google to “put an end to these self-preferencing practices” within 60 days and “introduce measures to eliminate its built-in conflicts of interest throughout the adtech supply chain.”
“Google is now required to propose an effective solution to resolve these conflicts of interest, and should the company fail, we are prepared to enforce stringent corrective actions,” said Teresa Ribera, who serves as the commission’s executive vice president for clean, just, and competitive transition. “Digital marketplaces are designed to benefit people and must operate on principles of fairness and trust. When market failures occur, public authorities are obligated to step in and prevent dominant firms from misusing their influence.”
A representative from Google responded to The Wall Street Journal, stating that the company plans to challenge the commission’s ruling, arguing, “There is nothing anticompetitive about offering services for both ad buyers and sellers, and today, there are more options than ever for these services.”
The Wall Street Journal noted that the announcement was pushed back from its initial target of September 1, allegedly due to ongoing discussions between the European Union and the United States regarding a potential trade agreement.
This fine marks the EU’s second-highest ever for antitrust—trailing only a $5 billion penalty also imposed on Google in 2018. The ruling was met with criticism not only from Google but also from U.S. President Donald Trump, who objected on Truth Social to the “numerous other Fines and Taxes that have been imposed on Google and other American Tech Companies” like Apple.
“We cannot allow such actions against exceptional American innovation, and if it happens, I will be compelled to initiate a Section 301 investigation to overturn these unfair penalties being levied against these tax-contributing American corporations,” Trump commented.
On Thursday, the president held a televised dinner attended by technology leaders, including Google CEO Sundar Pichai and co-founder Sergey Brin, who commended Trump’s administration for its approach to artificial intelligence, among other policies.
Meanwhile, Google appeared to achieve a win in an antitrust case in the United States. Although a federal judge previously found the company had unlawfully maintained its online search monopoly, the remedies ordered were far less severe than the Justice Department’s suggested requirements, which included forcing Google to divest Chrome or even Android.
