The European Union has levied a €2.95 billion ($3.45 billion) antitrust fine against Alphabet’s Google for engaging in anti-competitive practices within its lucrative advertising technology sector. This penalty, the fourth major fine Google has received from EU regulators in a decade, has ignited significant transatlantic tension, drawing sharp criticism from former U.S. President Donald Trump, who labeled the action “unfair” and “discriminatory.”
The European Commission’s investigation, initiated by a complaint from the European Publishers Council, found that Google had systematically favored its own online display technology services since 2014. This self-preferencing reinforced the central role of its ad exchange, AdX, within the adtech supply chain, allowing Google to charge high fees and harming both competitors and online publishers. The Commission has ordered Google to cease these practices and address its inherent conflicts of interest, giving the company 60 days to propose a compliance plan and 30 days to implement it.
In response, Google announced it would appeal the decision, arguing that the ruling is wrong and that the required changes would harm thousands of European businesses. The fine, while substantial, is notably lower than the record €4.3 billion penalty imposed on Google in 2018, signaling a potential shift in the EU’s enforcement strategy. However, the Commission warned that if Google’s remedies are insufficient, it may impose stronger measures, including the divestiture of parts of its adtech services.
The decision has broader implications for U.S.-EU relations, particularly in the realm of digital market regulation. President Trump threatened to initiate a Section 301 proceeding under the Trade Act of 1974, which could lead to retaliatory measures against the EU. This case underscores the growing friction between major global powers as the EU intensifies its efforts to regulate dominant tech platforms, while the U.S. moves to protect its corporate interests.
