Brussels, September 5 – The European Union has imposed a massive €2.95 billion (around $3.45 billion) fine on Google for anti-competitive practices in its advertising technology (adtech) business. This marks the fourth significant penalty Google has faced over the past decade from EU competition regulators. The decision has sparked strong reactions from U.S. political leaders, including former President Donald Trump, and highlights growing tensions between Europe and the United States over technology regulation.

The Fine and Its Background

The European Commission, the EU’s executive body, determined that Google abused its market dominance in the adtech sector. According to EU regulators, Google favored its own online display technology services, particularly its Ad Exchange (AdX), over those of competitors. This practice allowed Google to charge higher fees and gave it an unfair advantage, putting rivals and online publishers at a disadvantage.

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The investigation found that Google has engaged in such self-preferencing practices since 2014. As a result, the Commission ordered Google to stop these practices and take specific measures to resolve its conflicts of interest. The company has been given 60 days to submit a compliance plan to the EU and an additional 30 days to implement it.

Trump Criticizes the Fine

Former U.S. President Donald Trump quickly responded to the news, calling the EU action “unfair” and “discriminatory.” He said he would raise the matter directly with the European Union and warned that he might launch a Section 301 trade investigation if U.S. companies like Google continued to face what he described as unjust penalties.

Section 301 of the Trade Act of 1974 allows the United States to take action against foreign countries for practices that are deemed “unjustifiable” or that burden U.S. commerce. Trump has previously imposed trade tariffs on European goods, and his comments suggest that he may consider retaliatory measures if the EU continues to scrutinize American technology companies.

Google’s Response

Google has stated it will appeal the EU fine, calling the decision “wrong” and “unjustified.” The company claims that the changes required by the EU could hurt thousands of European businesses that rely on its ad services to generate revenue. Lee-Anne Mulholland, Google’s Vice President and Global Head of Regulatory Affairs, said, “There’s nothing anticompetitive in providing services for ad buyers and sellers, and there are more alternatives to our services than ever before.”

The company has also highlighted its intention to challenge the EU ruling in court. While the Commission has warned that stricter remedies could follow if Google fails to address its conflicts of interest, including potential divestitures of parts of its services, Google remains firm in its plan to appeal.

EU Regulators Stand Firm

The European Commission emphasized the importance of fair and transparent digital markets. Teresa Ribera, EU antitrust chief, said, “Digital markets exist to serve people and must be grounded in trust and fairness. When markets fail, public institutions must act to prevent dominant players from abusing their power.”

Ribera warned Google that if the company does not come up with a serious plan to address its conflicts of interest, the EU will not hesitate to impose strong remedies. The Commission’s previous approach included even larger fines, such as the record €4.3 billion fine in 2018, €2.42 billion in 2017, and €1.49 billion in 2019.

The EU fine stems from a complaint lodged by the European Publishers Council, which represents a wide range of media companies. The Council argued that fines alone would not address Google’s dominance in adtech. Angela Mills Wade, the executive director of the Council, said, “Without strong enforcement, Google will simply write this off as a cost of business while continuing to dominate the market and weaken news media and publishing companies that rely on advertising revenues.”

Calls for a Breakup

Some experts and industry advocates have called for even more drastic action. Cori Crider, a senior fellow at the Future of Tech Institute, said that a breakup of Google’s adtech operations may be necessary to fully address the monopoly. She explained, “Only a breakup will unlock this €120 billion market for European businesses and save media companies from unfair competition.”

While the EU has not yet pursued a breakup, the Commission’s statement indicates that it remains open to stronger remedies if Google fails to comply with its orders.

Impact on Global Relations

The fine and the reaction from Trump highlight broader tensions between the EU and the United States regarding technology regulation and market fairness. The EU has been more aggressive in regulating dominant digital platforms, while U.S. officials and leaders have often criticized these actions as unfair to American companies.

This latest fine also underscores the growing importance of digital advertising, as Google’s global ad revenue in 2024 reached $264.6 billion, which accounts for 75.6% of the company’s total revenue. Google earns this revenue from services such as search, Gmail, Google Play, Google Maps, YouTube, Ad Manager, AdMob, and AdSense.

What’s Next for Google

Google has 60 days to submit a plan explaining how it will comply with the EU’s order, and the company faces the possibility of stricter measures if it does not satisfy regulators. The Commission reiterated that it may demand partial divestitures of Google’s services if the compliance plan is not sufficient.

Meanwhile, Google is also involved in a separate legal case in the United States, where it is scheduled to go to trial on September 22. The U.S. Justice Department has accused Google of holding illegal monopolies in online advertising technology, which could result in additional remedies.

Why This Matters

The EU fine is not just about money—it reflects a larger effort by European regulators to ensure fair competition in digital markets. By targeting self-preferencing and market dominance, the EU aims to create a level playing field for publishers, advertisers, and other technology companies.

At the same time, the decision has broader geopolitical implications, as it could influence trade relations between the EU and the U.S. and impact how American technology companies operate in Europe.

Google now faces a significant challenge. While the company plans to appeal the fine, it must also navigate the EU’s warnings about stricter remedies and potential divestitures. The case highlights the delicate balance between fostering innovation and preventing market abuse in the rapidly growing digital economy.

With billions of dollars at stake and global political attention, this case is likely to be a defining moment in the regulation of digital markets. Both the European Union and the United States will closely watch the outcome, which could shape the future of global tech competition for years to come.