Google Faces €2.95 Billion Fine from EU Commission Over Advertising Practices
The EU Commission has levied a €2.95 billion fine against google for violating competition rules in the digital advertising market. The Commission determined that Google unfairly favored its own online advertising services, disadvantaging competing companies. Google has announced its intention to appeal the decision,deeming it “wrong” and “unjustified,” according to Lee-Anne Mulholland,a responsible manager at the company.
The investigation revealed that Google,holding a dominant position in the market,abused this power since 2014 by prioritizing its own products,a violation of Article 102 of the Treaty on the Functioning of the European Union.
The core of the EU’s concern lies in a perceived conflict of interest within Google’s business model. The company both buys and sells advertising space, operating a marketplace that connects advertisers with websites. The Commission is demanding Google alter its practices to avoid self-preferencing within this marketplace.
Google has been given 60 days to outline to the Commission how it intends to modify its business operations to comply with the ruling.The situation also raises the possibility of political repercussions. US President Donald Trump has previously threatened tariffs against countries enacting digital regulations perceived as detrimental to American technology firms.While Trump hasn’t specifically named the EU, the US government has generally advocated for revisions to the EU’s stringent digital laws, which aim to combat issues like the spread of misinformation and impact major tech companies including Amazon, Apple, Meta, Alphabet (Google), and Microsoft.