Google fined $3.5 billion by EU over anti-competitive ad practices

The European Commission, the primary executive branch of the European Union (EU), has levied a €2.95 billion ($3.5 billion) fine on Google for anti-competitive ad practices.

In a press release, the EU accused Google of breaching competition rules and "abusing its dominant position in the display advertising technology industry (Adtech)." The EU said that Google abused its position "on both sides of the Adtech supply chain."

It accused the technology giant of favoring its own services, "at the detriment" of competitors, publishers, and advertisers. It argued that, due to Google's actions, advertisers had to bear higher marketing costs and publishers experienced reduced revenue.

The EU states that this may have resulted in "lower service quality and higher subscription costs for consumers." The increased fine is the result of two previous offenses flagged in digital and advertising markets.

In 2017, the EU fined Google €2.42 billion for abusing its market dominance in the Search engine market. In 2018, the EU levied a record €4.34 billion fine for imposing illegal restrictions on Android device manufacturers that reinforced its dominant position in Search.

In 2019, Google was fined €1.49 billion for forcing third-party websites to sign contracts to prevent competitors from placing ads on their websites.

In 2023, Google was sent a Statement of Objections, warning the company of favoring its own ad-tech services over those of its competitors.

Google now has 60 days, "to stop its illegal practices and to put an end to its inherent conflict of interests in the Adtech industry." It must inform the Commission of a plan, failing which, "the Commission will not hesitate to impose an appropriate remedy."

In a statement shared with Bleeping Computer, Google's Global Head of Regulatory Affairs, Lee-Anne Mulholland, said the EU's decision was "wrong" and that the company plans to appeal.

According to Mulholland, the decision "imposes an unjustified fine and requires changes that will hurt thousands of European businesses by making it harder for them to make money."