Google Fined €2.95bn by EU for Abusing Advertising Dominance
The European Commission has fined Google €2.95 billion (approximately $3.2 billion) for allegedly abusing its power in the ad tech sector, a move that has sparked widespread criticism and calls for greater regulation of the tech giant's online advertising empire.
According to the European Commission, Google breached competition laws by favoring its own products for displaying online ads, thereby stifling innovation and competition from rival companies. The fine is one of the largest ever imposed on a single company by the EU, and it comes amid increased scrutiny by regulators worldwide over Google's dominance in online search and advertising.
Google has vowed to appeal the decision, calling it "wrong" and arguing that the fine will harm thousands of European businesses by making it harder for them to compete with the tech giant. In a statement to the BBC, Google said: "It imposes an unjustified fine and requires changes that will hurt thousands of European businesses by making it harder for them to use our products."
The EU's decision is seen as a significant blow to Google's business model, which relies heavily on its dominance in online advertising. The company has been accused of using its market power to stifle competition from rival companies, and the fine is seen as a major step towards addressing these concerns.
According to Reuters, the European Commission said that Google had engaged in "unfair business practices" by favoring its own products over those of competitors. The commission added that Google's actions had resulted in significant harm to consumers and businesses alike, including higher prices for online advertising services.
The fine is the latest development in a long-running investigation into Google's business practices, which has been ongoing since 2010. In 2018, the EU fined Google €4.34 billion (approximately $5 billion) for abusing its dominance in the Android operating system market.
Google's dominance in online advertising has raised concerns among regulators and experts alike. According to a report by the UK-based think tank, the Centre for Policy Studies, Google's control of the ad tech sector has resulted in significant barriers to entry for new companies, making it harder for them to compete with established players like Google.
The EU's decision is seen as a major victory for regulators and competition advocates who have long argued that Google's dominance in online advertising has stifled innovation and competition. According to Margrethe Vestager, the European Commissioner responsible for competition policy, "Today's decision shows that we will not tolerate companies abusing their dominant position on the market."
As the case continues to unfold, it remains to be seen how Google will respond to the fine and what changes it may make to its business practices. In a statement, Google said: "We will continue to work with the European Commission to address any concerns they may have."
This story was compiled from reports by BBC World, BBC Technology and BBC Business.
