EU fines Google €2.95 billion for favoring own ad services.

The European Commission fined Google $3.5 billion for violating EU antitrust rules by favoring its own advertising services. The commission found that Google abused its dominant positions by favoring its ad exchange AdX in publisher ad servers and ad-buying tools. Google has 60 days to end self-preferencing practices and address conflicts of interest. The company plans to appeal the decision. This is the EU's second-largest antitrust fine, and it follows a similar fine against Google in 2018.

The European Commission has imposed a €2.95 billion fine on Google, accusing the tech giant of violating EU antitrust rules by favoring its own advertising technology services. The commission found that Google's practices distorted competition in the adtech industry, harming rivals, advertisers, and publishers [1].

The EU's competition chief, Teresa Ribera, stated that Google abused its dominant position by ensuring its own ad exchange, AdX, was prioritized in publisher ad servers and ad-buying tools. This practice created an unfair advantage for Google, making it difficult for competitors to compete [2].

Google has 60 days to cease self-preferencing practices and address any conflicts of interest. Failure to comply within this period could result in further penalties. The company has already indicated its intention to appeal the decision [3].

This fine, one of the largest antitrust penalties in EU history, is the second significant penalty against Google in recent years. In 2018, Google was fined €4.34 billion for similar practices, making the current penalty the second-largest in the EU's antitrust enforcement history [1].

The investigation began in 2021 when the European Commission looked into whether Google's tools gave the company an unfair advantage over competitors. The commission found that Google's tools on both the buying and selling sides of the ad chain worked together to favor Google's own services, cutting out competitors [2].

Google has defended the ruling, stating that the decision is "wrong" and that it will appeal. The company argues that there are more alternatives to its services than ever before and that providing services for ad buyers and sellers is not anticompetitive [3].

The European Commission's decision follows a broader EU-U.S. trade deal that cleared the way for the fine. The deal aimed to ease transatlantic tensions, including concerns about U.S. tariffs on European cars [2].

References:
[1] https://ec.europa.eu/commission/presscorner/detail/en/ip_25_1992
[2] https://www.cryptopolitan.com/google-3-5b-eu-fine-over-ad-tech-favoritism/
[3] https://www.scmp.com/news/world/europe/article/3324569/google-hit-us345-billion-eu-antitrust-fine-over-adtech-practices?utm_source=rss_feed