Commission fines Google 2.95bn euros for abusive practices in advertising tech
The European Commission has imposed a fine of 2.95 billion euros on Google. The European competition watchdog claims that the American tech giant distorts competition by unlawfully favouring its online advertising technology.
Advertisers and publishers of websites and apps use digital tools to place advertisements not specifically linked to search queries, such as ads on news sites. They rely on this technology to get their advertising onto the most suitable websites and apps and to the desired target groups.
According to the Commission, Google has abused its dominant position to favour its own services, at least since 2014.
Dominant position
Google provides several services that intermediate between advertisers and publishers to display ads. It operates two ad buying tools – Google Ads and DV 360 – a publisher ad server, DoubleClick For Publishers, and an advertising exchange, AdX.
The Commission, which launched an investigation in 2021, believes Google has taken advantage of these dominant positions to favour AdX. This shielded it from competitors and, according to the Commission, allowed Google to charge higher fees for the service.
“Today’s decision shows that Google abused its dominant position in adtech harming publishers, advertisers, and consumers. This behaviour is illegal under EU antitrust rules,” Commission vice president Teresa Ribera said in a press release.
"It appears the only way for Google to end its conflict of interest effectively is with a structural remedy, such as selling some part of its Adtech business"
This is not first time the Commission has fined Google. In 2018, the company had to pay a record fine of more than 4 billion euros for abusing Android’s dominant position.
A year earlier, there was a 2.4 billion euro fine following an investigation into the price comparison service Google Shopping.
Conflicts of interest
In addition to the fine, the Commission is demanding that Google put an end to its self-preferencing practices. The company must take measures to stop these “inherent conflicts of interest” and has 60 days to let the Commission know how it intends to do this.
Two years ago, Ribera’s predecessor, Margrethe Vestager, threatened to force Google to divest some of its activities. This decision does not go that far.
The Commission first wants to hear Google’s response, but officials consider it unlikely that there are other ways to resolve the conflict of interest.
“At this stage, it appears that the only way for Google to end its conflict of interest effectively is with a structural remedy, such as selling some part of its Adtech business,” said Ribera.
US action
Google is also facing action in the US, following a recent decision by a federal court based on a Department of Justice complaint.
At the end of last month, US president Donald Trump threatened to impose higher customs tariffs on countries and organisations that hinder American tech companies with taxes or regulations.
Teresa Ribera, vice president of the European Commission for a Clean, Just and Competitive Transition © PHOTO HANS LUCAS COLLECTION
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