EU Hits Google with $3.45B Fine Over Adtech Monopoly, Demands Major Changes to Advertising Practices

The European Union has imposed a record €2.95 billion ($3.45 billion) fine on Google for breaking antitrust rules in its use of advertising technology. It is the fourth major sanction against the tech giant in its long battle with EU authorities.

The European Commission determined that since 2014, Google has abused its market power by favoring its own display advertising services at the expense of competitors, publishers, and advertisers. This self-preferencing behavior distorted competition and raised marketers' expenses, which in turn ultimately ended up being passed on to consumers.

Google has been instructed to halt such practices and remedy inherent conflicts of interest in its adtech business. The Commission appeared to indicate that structural remedies, including divestment of part of Google's advertising business, may be needed if the company fails to devise appropriate remedies within 60 days.

The penalty comes amidst growing international pressure on Google's ad dominance. In the same week, the company was separately penalized in France and the United States, worth more than $800 million. Opponents say penalties are not enough and demand Google's ad empire be broken up to restore fairness in the market.

Google has rejected the EU's findings and vowed to appeal, stating that the decision is unwarranted and harmful to European businesses. The company claims that its products are of value and that there is healthy competition among firms within the adtech industry.

As regulatory pressure mounts across continents, this milestone ruling could reshape the digital advertising landscape and set the stage for future application of antitrust law.