Google Fined €2.95bn by EU for Abusing Advertising Dominance
In a major blow to the tech giant, Google has been fined €2.95 billion (approximately $3.2 billion) by the European Union for allegedly abusing its power in the ad tech sector. According to the European Commission, Google breached competition laws by favoring its own products for displaying online ads, thereby harming rivals.
The fine, which is one of the largest ever imposed on a single company, comes amid increased scrutiny by regulators worldwide over Google's dominance in online search and advertising. The EU's decision was announced on Friday, with the Commission stating that Google had engaged in "unfair business practices" to maintain its market position.
Google has vowed to appeal the fine, calling it "wrong" and arguing that it will harm thousands of European businesses by making it harder for them to compete. "It imposes an unjustified fine and requires changes that will hurt thousands of European businesses," a Google spokesperson said in a statement to the BBC.
The EU's investigation into Google's ad tech practices began in 2019, with regulators examining the company's use of its Ad Exchange platform to favor its own products over those of competitors. According to the Commission, Google's dominance in online advertising has allowed it to dictate terms to publishers and advertisers, stifling competition and innovation.
The fine is part of a broader effort by EU regulators to curb the power of tech giants and promote fair competition in the digital market. In recent years, the EU has taken similar action against companies like Amazon and Facebook, highlighting concerns over their dominance in key sectors.
While Google's appeal process will likely take months or even years to unfold, the fine is a significant setback for the company, which has faced increasing scrutiny from regulators worldwide. As one expert noted, "The EU's decision sends a clear message that tech giants cannot ignore: they must respect competition laws and avoid abusing their market power."
In the meantime, Google will be required to make changes to its ad tech practices to comply with EU regulations. The company has until June 2023 to implement these changes, which are expected to have far-reaching implications for online advertising.
As the case continues to unfold, one thing is clear: the EU's decision marks a significant turning point in the ongoing debate over tech giants and their role in shaping the digital market.
This story was compiled from reports by BBC Technology and BBC Business.
