EU drops $3.5bn hammer on Google in record Ad-Tech crackdown

By Kazeem Ugbodaga

The European Union has issued its second-largest antitrust penalty ever, a hefty €2.95 billion (nearly USD 3.5 billion), against Google for abusing its dominant position in digital advertising technology.

This marks Google’s fourth major fine from the EU in recent years.

EU regulators concluded that Google unfairly prioritized its own ad exchange, AdX, over competitors in the ad-tech marketplace.

This self-preferencing tilted competition, harmed publishers and advertisers, and drove up costs. The Commission determined these practices breached EU competition rules.

Google has 60 days to submit proposals to resolve these “inherent conflicts of interest.” While structural remedies, like divesting parts of its ad-tech business, were not imposed immediately, they remain on the table if the company’s remedy plan is deemed inadequate.

EU Competition Chief Teresa Ribera emphasized the importance of fair digital markets, stating: “Google must now come forward with a serious remedy to address its conflicts of interest.”

Google, through Lee-Anne Mulholland (Global Head of Regulatory Affairs), countered that the EU’s decision was “unjustified” and would hurt thousands of European businesses. The company confirmed it will appeal.

This ruling followed a lengthy, four-year EU investigation initiated in mid-2021. It added to similar challenges Google faced in the United States, where the Department of Justice is pursuing antitrust remedies, including potential divestiture of parts of its ad-tech operations.

Some industry groups argued the fine alone might not deter Google’s behaviour.

As noted by the European Publishers Council, “A fine will not fix Google’s abuse of its ad tech. Without strong and decisive enforcement, Google will simply write this off as a cost of business.”