Google Fined €2.95bn by EU for Abusing Advertising Dominance
The European Commission has imposed a record-breaking fine of €2.95 billion on Google, the tech giant's advertising dominance in the ad tech sector. The fine was announced on Friday and marks the latest development in the ongoing scrutiny of Google's empire 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. This move has been met with criticism from regulators worldwide, who have expressed concerns over Google's market dominance.
Google told the BBC that the Commission's decision was "wrong" and that it would appeal the fine. The company argued that the fine is unjustified and will hurt thousands of European businesses by making it harder for them to compete in the online advertising market.
The fine is a significant blow to Google, which has faced increased scrutiny from regulators in recent years. In 2018, the EU fined Google €4.34 billion for abusing its dominance in the Android operating system market. This latest fine brings the total amount paid by Google to the EU to over €7 billion.
Google's dominance in online search and advertising is a major concern for regulators worldwide. The company's ad tech sector, which determines where and how ads are displayed online, has been accused of favoring its own products over those of rivals. This has led to accusations that Google is stifling competition and limiting innovation in the market.
The European Commission's decision to fine Google is a significant step towards addressing these concerns. According to Margrethe Vestager, the EU's Competition Commissioner, "Google's behavior is illegal under EU antitrust rules because it distorts competition in the ad tech sector."
Google has until September 28 to appeal the fine and make any necessary changes to its business practices.
In a statement, Google said: "We will continue to work with the Commission to address their concerns. We believe that our advertising technologies have increased choice for both advertisers and publishers, driven innovation and provided better results for users."
The fine is a major setback for Google, but it remains to be seen how the company will respond to the decision. The EU's move has been welcomed by rival companies, who have long accused Google of abusing its dominance in the ad tech sector.
As the situation continues to unfold, one thing is clear: Google's advertising dominance is under increasing scrutiny from regulators worldwide. With a record-breaking fine and a looming appeal deadline, the company faces significant challenges ahead.
Sources:
European Commission
BBC Technology
BBC Business
This story was compiled from reports by BBC Technology and BBC Business.
