Google faces a $3.45 billion fine from the European Union for engaging in anticompetitive advertising technology practices, the European Commission said Friday.
The fine stems from a complaint by the European Publishers Council alleging Google gave preference to its own online ad display services, hurting competitors and online publishers. The European Commission wants Google to stop these self-preferential practices and to cease its conflicts of interest. The Commission says it'll give Google, which reported roughly $350 billion in revenue in 2024, the opportunity to show how it will comply before recommending divestment from some of its ad tech services.
"Digital markets exist to serve people and must be grounded in trust and fairness," said Teresa Ribera, executive vice president for clean, just and competitive transition at the European Commission, in a press release. "And when markets fail, public institutions must act to prevent dominant players from abusing their power. True freedom means a level playing field, where everyone competes on equal terms and citizens have a genuine right to choose."
Google disagreed with the decision and says it 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," said Lee-Anne Mulholland, global head of regulatory affairs at Google, in a statement. "There's nothing anticompetitive in providing services for ad buyers and sellers, and there are more alternatives to our services than ever before."
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President Donald Trump signaled to European regulators earlier this year that his administration would go after entities that fine American tech companies. The latest EU fine was supposed to land on Monday, but was delayed after opposition by EU trade chief Maros Sefcovic, according to Reuters.
The fine comes as regulators globally try to rein in Big Tech's power. Google operates the world's largest search engine, online ad marketplace, web browser and mobile operating system, and the company is often in regulators' crosshairs.
This week, in a landmark US antitrust case accusing Google of operating an illegal monopoly with its search engine, the judge gave Google a slap on the wrist and held back from the harshest possible remedies, like ordering Google to sell its Chrome internet browser. Google's stock jumped after the ruling. Despite the comparatively lax penalties, Google said it would appeal the ruling. The Department of Justice said it's evaluating if it will appeal.
Read more: Judge Rules Google Can Keep Chrome but Must Stop Exclusive Search Deals
This isn't the first time Google has been fined by the EU antitrust division. In 2017, Google was hit with a $2.7 billion fine because the site prioritized its shopping results in Search, hurting competition. In 2018, a $5 billion fine was levied against Google for anticompetitive practices via Android, which gives Google Search and Chrome dominance on third-party devices. In 2019, a $1.7 billion fine was imposed on Google for blocking competitors on its AdSense platform.
Earlier this week, France's data protection authority fined Google $381 million for improperly using cookies in Gmail. Separately, a group of European publishers filed a complaint against Google for using their content in AI Overviews earlier this year.