The European Commission has fined Google €2.95 billion (just under $3.5 billion) for violating European Union antitrust rules by favoring its own advertising services. The commission has given Google 60 days to end its self-preferencing practices and implement measures to cease its inherent conflicts of interest in the adtech supply chain.
By the Numbers
The penalty is one of the largest ever issued by the European regulator:
- €2.95B (~$3.5B): The total value of the fine imposed on Google.
- 2nd Largest Ever: This is the EU’s second-largest antitrust fine, behind a $5 billion fine also levied against Google in 2018.
- 60 Days: The timeframe Google has to “bring these self-preferencing practices to an end”.
Abuse of a Dominant Position
The commission found that Google had “abused” its “dominant positions” by favoring its own ad exchange, AdX, in both its publisher ad server and its ad-buying tools. “Google must now come forward with a serious remedy to address its conflicts of interest, and if it fails to do so, we will not hesitate to impose strong remedies,” said Teresa Ribera, the commission’s executive vice president.
A Transatlantic Clash
A Google spokesperson told The Wall Street Journal that the company would appeal the commission’s decision, adding, “There’s nothing anticompetitive in providing services for ad buyers and sellers”. The decision also drew criticism from U.S. President Donald Trump, who complained about the “many other Fines and Taxes that have been issued against Google and other American Tech Companies” and said he would be “forced to start a Section 301 proceeding to nullify the unfair penalties” if it continues.
Looking Ahead
This ruling comes as Google appeared to score an antitrust victory in the United States, where a judge’s remedies in a search monopoly case fell far short of what the Justice Department had proposed. For the MENA region’s rapidly growing digital advertising market, this landmark EU ruling could influence future regional regulations and the competitive landscape for adtech providers.
Source: TechCrunch
