Google Fined €2.95bn by EU for Abusing Advertising Dominance
The European Commission has fined Google €2.95 billion (approximately $3.25 billion) for allegedly abusing its power in the ad tech sector, a move that marks the latest development in the ongoing scrutiny of the tech giant's dominance in online search and advertising.
According to the European Commission, Google breached competition laws by favoring its own products for displaying online ads, thereby harming rivals in the process. The fine is one of the largest ever imposed on a single company by the EU, and it comes amid increased regulatory pressure on Google worldwide.
Google has vowed to appeal the decision, calling it "wrong" and arguing that the fine and required changes will hurt thousands of European businesses. "It imposes an unjustified fine and requires changes that will make it harder for them to use online advertising," a spokesperson said in a statement to the BBC.
The Commission's investigation found that Google had engaged in anti-competitive practices, including forcing publishers to use its ad exchange, AdX, and limiting access to its AdMob mobile app advertising platform. According to Reuters, the EU's decision is seen as a significant blow to Google's business model, which relies heavily on online advertising revenue.
Industry experts have long criticized Google's dominance in the digital advertising market, with some arguing that it has created an unfair advantage for itself at the expense of smaller competitors. "This fine sends a clear message that regulators will not tolerate anti-competitive behavior," said one analyst, who wished to remain anonymous. "Google's business practices have been under scrutiny for years, and this decision is a long-overdue recognition of the harm it has caused."
The EU's decision marks the latest development in a series of regulatory actions against Google worldwide. In 2018, the company was fined €4.34 billion by the European Commission for abusing its dominance in the Android operating system market. The current fine brings the total amount paid by Google to the EU to over €6.29 billion.
Google has until September 28th to appeal the decision and implement the required changes. If the appeal is unsuccessful, the company will be forced to make significant modifications to its business practices, including allowing rival ad exchanges access to its AdX platform.
The outcome of this case will have far-reaching implications for Google's business model and its competitors in the digital advertising market. As one expert noted, "This decision sets a precedent for regulators worldwide and sends a clear message that tech giants must operate within the bounds of competition law."
This story was compiled from reports by BBC Technology and BBC Business.
