EU Fines Google €2.95 Billion Over Adtech Abuses. Alphabet’s Google has been hit with a €2.95 billion ($3.45 billion) fine by the European Union for anti-competitive practices in its adtech business. This marks the fourth major penalty against the tech giant in a decade-long battle with EU regulators.
Earlier, Google has agreed to pay a A$55 million (US$35.8 million) fine in Australia.
The fine comes amid rising global trade tensions and increasing scrutiny of American tech firms. The European Commission said Google used its dominance to unfairly promote its own advertising services, harming rivals and publishers.
Trump Slams EU Action, Threatens Retaliation
Former U.S. President Donald Trump criticized the fine, calling it “unfair” and “discriminatory.” He warned that he may initiate a Section 301 investigation under the Trade Act of 1974. This law allows the U.S. to respond to foreign practices that are deemed unjust or harmful to U.S. commerce.
“We cannot let this happen to brilliant and unprecedented American ingenuity,” Trump said on Truth Social. Speaking to reporters later, he added, “I will be speaking to the European Union.”
This isn’t the first time Trump has threatened retaliation. He has previously imposed tariffs on European goods in response to EU actions against U.S. tech companies.
Why the EU Took Action
The European Commission acted on a complaint from the European Publishers Council. Regulators accused Google of favouring its own display ad technologies, particularly AdX, in ways that excluded rivals and inflated fees for publishers.
The abuse allegedly began in 2014 and continues today. Google has 60 days to outline its compliance plan and an additional 30 days to implement it.
EU competition chief Teresa Ribera stated that further action, including potential divestitures, remains on the table if Google fails to address its conflicts of interest.
“Digital markets exist to serve people and must be grounded in trust and fairness,” Ribera said. “When markets fail, public institutions must act.”
Google Plans to Appeal
Google pushed back strongly, saying it would appeal the decision.
“The Commission’s decision about our ad tech services is wrong and we will appeal,” said Lee-Anne Mulholland, VP of global regulatory affairs. She warned that the changes required could hurt thousands of European businesses that rely on Google’s advertising tools.
“There’s nothing anti-competitive in providing services for ad buyers and sellers,” she added.
Google’s 2024 advertising revenue totaled $264.6 billion, accounting for 75.6% of its total income. While Google doesn’t disclose detailed adtech revenue, it remains the world’s leading digital advertising platform.
Mixed Reactions from Industry & Experts
The European Publishers Council welcomed the fine but said it didn’t go far enough.
“A fine will not fix Google’s abuse,” said Executive Director Angela Mills Wade. “Without strong enforcement, Google will simply write this off as a cost of business.”
Cori Crider, from the Future of Tech Institute, called for a stronger remedy.
“Only a break-up will fix Google’s monopoly,” she said. “Europe made an important stand for the rule of law today, but it’s only the first step.”
What Comes Next
The European Commission confirmed that a break-up of Google’s adtech business remains an option. However, it will first assess whether Google proposes a “serious remedy.”
Meanwhile, Google is set to face another legal challenge in the United States. On September 22, it goes to trial over a separate DOJ case involving monopolies in online advertising.
