Key Takeaways
1. The European Commission fined Google €2.95 billion ($3.5 billion) for anti-competitive advertising practices in the Adtech sector.
2. Google was accused of misusing its dominant position by favoring its own services over competitors, impacting advertisers and publishers negatively.
3. The EU stated that Google’s actions could lead to poorer service quality and increased subscription prices for consumers.
4. This fine is part of a history of penalties against Google, following previous fines in 2017, 2018, and 2019 for various competition law violations.
5. Google has 60 days to address the issues outlined by the EU or face further action, and the company plans to appeal the ruling, claiming it could harm European businesses.
The European Commission, which is the main executive part of the European Union (EU), has slapped Google with a hefty fine of €2.95 billion ($3.5 billion) due to anti-competitive advertising practices.
Accusations Against Google
In an announcement, the EU claimed that Google had violated competition laws and was “misusing its dominant status in the display advertising technology sector (Adtech).” They stated that Google misused its position “on both ends of the Adtech supply chain.”
The EU accused the tech giant of giving preference to its own services, “to the disadvantage” of other competitors, publishers, and advertisers. They argued that because of Google’s actions, advertisers faced increased marketing expenses, while publishers saw a drop in their earnings.
Impact on Consumers
The EU explained that these actions might have led to “poorer service quality and increased subscription prices for consumers.” The hefty fine comes after two earlier violations in the digital and advertising marketplaces.
Back in 2017, Google faced a fine of €2.42 billion for misusing its market dominance in the Search engine field. In 2018, a record fine of €4.34 billion was imposed for putting illegal restrictions on Android device makers, which helped solidify its leading position in Search.
Ongoing Legal Challenges
In 2019, Google was penalized with €1.49 billion for compelling third-party websites to enter contracts that blocked competitors from displaying ads on their sites.
In 2023, Google received a Statement of Objections, alerting the company about its favoritism towards its own ad-tech services over those of its rivals.
Google now has a period of 60 days “to cease its illegal practices and to eliminate its inherent conflict of interests in the Adtech sector.” They are required to present a plan to the Commission, or else “the Commission will not hesitate to enforce an appropriate remedy.”
In a statement relayed to Bleeping Computer, Google’s Global Head of Regulatory Affairs, Lee-Anne Mulholland, argued that the EU’s ruling was “incorrect” and mentioned that the company intends to appeal.
Mulholland stated that the ruling “imposes an unjustified fine and demands changes that could harm thousands of European businesses by making it more difficult for them to earn revenue.”
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