Google hit with massive $3B EU antitrust fine over adtech practices | Latest Tech News
Google was hit with a $3.45 billion fine by the European Union on Friday for anti-competitive practices in its profitable adtech business, a sharp sanction against the firm that may rile up President Trump.
The fine, the fourth penalty Google has confronted in its decade-long struggle with EU competitors regulators, comes amid effervescent commerce tensions between major global powers and US threats of retaliation over EU scrutiny of American tech companies.
The transfer by the European Commission was triggered by a criticism from the European Publishers Council. Trump, who has hit Europe with commerce tariffs, has threatened to retaliate against the European Union for any push back against Big Tech.
Google was slapped with a fine of more than $3 billion for anti-competitive practices in its profitable adtech business. CEO Sundar Pichai, above. AP
While Google plans to appeal, the Commission has warned of stronger remedies – including potential divestitures – if the company fails to tackle its conflicts of curiosity. The case underscores growing transatlantic friction over digital market regulation and the EU’s push to rein in dominant platforms.
The EU competitors enforcer had initially deliberate to hand out the fine on Monday but opposition from EU commerce chief Maros Sefcovic on considerations about the affect on US tariffs on European automobiles derailed EU antitrust chief Teresa Ribera’s plan.
The Commission said Google favored its own online show technology companies that strengthened its own advert exchange AdX’s central position in the adtech provide chain and allowed Google to charge high charges for its service, to the detriment of rivals and online publishers.
Google abused its market energy since 2014 until today, the EU watchdog said.
It ordered Google to stop the self-preferencing practices and take measures to stop its inherent conflicts of curiosity.
The company has 60 days to inform the Commission how it plans to comply with this order.
The Commission reiterated its preliminary view that Google ought to divest half of its companies but said it desires to first hear and assess Google’s compliance efforts.
The Commission said Google favored its own online show technology companies to the detriment of rivals and online publishers and that it abused its market energy since 2014 until today. EU antitrust chief Teresa Ribera, above. AP
“Google must now come forward with a serious remedy to address its conflicts of interest, and if it fails to do so, we will not hesitate to impose strong remedies,” Ribera said in a assertion.
“Digital markets exist to serve people and must be grounded in trust and fairness. And when markets fail, public institutions must act to prevent dominant players from abusing their power,” she said.
‘We will appeal’
Google criticized the EU resolution and said it could problem it in court.
“The European Commission’s decision about our ad tech services is wrong and we will 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,” Lee-Anne Mulholland, Vice President, Global Head of Regulatory Affairs, said in a assertion.
Google criticized the EU resolution and said it could problem it in court. REUTERS
“There’s nothing anticompetitive in providing services for ad buyers and sellers, and there are more alternatives to our services than ever before.”
The latest fine in contrast with a document $5 billion penalty handed out to Google in 2018, $2.8 billion in 2017 and a $1.75 billion in 2019.
GWN reported last week that the fine can be modest, marking a change in Ribera’s strategy with her predecessor’s deterrent hefty fines.
The European Publishers Council lamented the absence of a breakup order.
“A fine will not fix Google’s abuse of its adtech,” its government director Angela Mills Wade said.
The latest fine in contrast with a document $5 billion penalty handed out to Google in 2018, $2.8 billion in 2017 and a $1.75 billion in 2019. REUTERS
“Without strong and decisive enforcement, Google will simply write this off as a cost of business while consolidating its dominance in the AI era, perpetuating unfair competition and weakening news media and publishing companies which rely on advertising revenues,” she said.
Cori Crider, Senior Fellow at Future of Tech Institute, and an Honorary Professor at UCL Laws, urged the Commission to take a drastic step with a breakup order.
“Europe made an important stand for the rule of law today by pressing ahead with this first-step fine in the face of Trump and Big Tech’s bullying,” she said.
“But I want to be clear: only a break-up will fix Google’s monopoly, unlock this €120bn market for European business, and save our dying media sector.”
Google is scheduled to go to trial in the United States on September 22 to decide remedies in a separate case introduced by the Justice Department where a decide discovered the company holds unlawful monopolies in online promoting technology.
Google’s 2024 promoting income, including from search companies, Gmail, Google Play, Google Maps, YouTube, Google Ad Manager, AdMob and AdSense, amounted to $264.6 billion or 75.6% of complete income. It is the world’s dominant digital-advertising platform.
Google doesn’t present income figures for its adtech business which relates to promoting on other web sites and not search advertisements.
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