EU Fines Google $3.5B in Ad-Tech Case Despite Trump Trade Threat/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ The European Union fined Google $3.5 billion for abusing its dominance in the digital advertising market, despite the threat of trade retribution from U.S President Donald Trump. Regulators accused the tech giant of favoring its own ad services at rivals’ expense. Google called the ruling “wrong” and vowed to appeal, warning the changes could harm European businesses.
EU Google Ad-Tech Case: Quick Looks
- EU fines Google €2.95 billion ($3.5 billion) for antitrust breaches.
- Commission accuses Google of “self-preferencing” in digital advertising.
- Decision requires Google to address conflicts of interest in ad supply chain.
- Fine marks Google’s fourth major EU antitrust penalty.
- Original push for forced divestment abandoned in final ruling.
- Investigation began in 2021, focused on ad-tech dominance.
- Google says ruling unfair, will appeal.
- EU tensions with U.S. rise over trade and tech regulation.
Deep Look: Google Fined $3.5 Billion by EU for Ad-Tech Antitrust Violations
LONDON — The European Union has fined Google €2.95 billion ($3.5 billion) for allegedly abusing its dominant role in the digital advertising industry, marking the company’s fourth major antitrust penalty in Europe and a significant rebuke of its ad-tech practices, despite the threat of trade retribution from U.S President Donald Trump.
The ruling, announced Friday by the European Commission, accuses Google of systematically favoring its own advertising services in the lucrative online display ad market, to the detriment of publishers, advertisers, and rival ad-tech providers.
“Google abused its dominant positions in the ad-technology ecosystem,” the Commission said in its statement, ordering the U.S. company to end its self-preferencing and adopt measures to prevent conflicts of interest across its advertising supply chain.
Google Pushes Back, Plans Appeal
Google rejected the decision, arguing that its ad tools help businesses and consumers rather than harm competition. Lee-Anne Mulholland, the company’s global head of regulatory affairs, said the ruling was “wrong” and vowed an appeal.
“It imposes an unjustified fine and requires changes that will hurt thousands of European businesses by making it harder for them to make money,” Mulholland said.
“There’s nothing anticompetitive in providing services for ad buyers and sellers, and there are more alternatives to our services than ever before.”
Background: Years of Scrutiny
The Commission’s fine follows a formal investigation launched in June 2021, examining whether Google was using its ad-tech dominance to preference its own display advertising tools. These ads—typically banners or text tailored to browsing history—are a core revenue stream for Google.
EU regulators had previously suggested that only a forced divestment of parts of Google’s ad business could address competition concerns. That stance has now softened, with the final decision requiring operational changes instead of a breakup.
The White House has used massive tariffs and the threat of trade retribution to cow foreign countries and institutions since Trump returned to office in January.
Analysts note the shift may reflect political tensions with Washington, where the Trump administration has clashed with Brussels on tariffs, trade, and tech regulation.
Fourth Major EU Fine
This latest case adds to Google’s long history of run-ins with the EU over competition law. Previous penalties have targeted its shopping service, Android licensing practices, and AdSense contracts, costing the company billions in fines.
Critics argue that such penalties have done little to alter Google’s long-term behavior, as the company often modifies its practices while maintaining its overall market dominance.
Broader Tech Tensions
The fine comes amid rising U.S.-EU disputes over regulation of major tech firms. Brussels has pushed aggressively to enforce its Digital Markets Act (DMA), designed to curb the power of so-called “gatekeeper” platforms like Google, Apple, and Meta.
The ruling underscores European regulators’ determination to rein in Silicon Valley giants, even as those companies argue that compliance costs and restrictions could hamper innovation and global competitiveness.
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