EU fines Google $3.45 billion for antitrust violations in adtech market

Since 2014, Google has allegedly engaged in self-preferencing practices, favoring its own display ad services on both demand and supply sides, enabling it to dominate digital ad trading while sidelining rival platforms and independent publishers

European regulators have imposed a €2.95 billion ($3.45 billion) antitrust fine on Google, accusing the tech giant of abusing its dominant position in the digital advertising technology sector. The landmark decision, announced by the European Commission on Friday (September 5), marks the fourth major penalty levied against the company in recent years and adds further strain to U.S.-EU relations amid ongoing scrutiny of Big Tech.

The latest action stems from a multi-year investigation that found Google had been unfairly promoting its own adtech services to the detriment of competitors and digital publishers. The Commission stated that Google gave preferential treatment to its own advertising exchange, AdX, reinforcing its central position in the digital advertising ecosystem while inflating fees and limiting market competition.

Preferencing practices targeted

According to the European Commission’s findings, Google had been engaging in self-preferencing practices since 2014, favouring its own online display ad services across both the demand and supply sides of the advertising supply chain. These practices allegedly allowed Google to control the buying and selling of digital ads while marginalizing rival platforms and independent publishers.

“Google’s behaviour has harmed competition, stifled innovation, and ultimately affected the diversity and sustainability of online news and publishing,” said EU Competition Commissioner Teresa Ribera. She warned that unless Google implements meaningful structural changes, more severe remedies—including forced divestitures—could follow.

The Commission has ordered Google to cease the anti-competitive conduct immediately and present a compliance plan within 60 days. A 30-day grace period will follow for the company to implement the proposed measures. While the regulator stopped short of demanding a breakup, it reiterated that more drastic steps remain on the table if Google fails to act.

U.S. tensions and global implications

The decision comes against a backdrop of rising transatlantic friction over digital regulation. U.S. President Donald Trump had previously criticized EU moves against American tech companies, threatening retaliatory tariffs on European goods, including cars. Although the timing of the fine was reportedly adjusted to avoid aggravating trade tensions, the Commission ultimately moved forward with the sanctions after internal debate.

In response to the ruling, Google said it plans to challenge the fine in court. “This decision is mistaken both on the facts and the law,” said Lee-Anne Mulholland, Google’s Global Head of Regulatory Affairs. “Far from limiting competition, our ad services support thousands of European businesses.”

Industry groups, however, argued that financial penalties alone are insufficient. The European Publishers Council expressed disappointment that no breakup order was issued, claiming Google could simply absorb the cost without changing its business model. Meanwhile, some digital rights advocates called for stronger enforcement to address what they describe as entrenched monopolistic behaviour.

Adtech under the microscope

The fine is one of several high-profile cases involving Google’s ad practices. The company is also facing a separate trial in the United States later this month, where it has been accused of holding illegal monopolies in the online advertising market. Advertising remains Google’s core business, generating over $264 billion in revenue in 2024—more than 75% of its total earnings.

While Google does not disclose specific figures for its adtech division, regulators across both continents are increasingly zeroing in on how its dominance in digital advertising impacts the broader media and technology landscape.