EU Antitrust Fine on Google Expected to be Modest Over Adtech Issues

The European Union is expected to impose a modest antitrust fine on Google for alleged anti-competitive actions within its adtech sector. The fine is unlikely to reach the levels of previous penalties, such as the €4.3bn fine in 2018 related to Google's Android operating system. The EU's new antitrust chief, Teresa Ribera, aims to focus on stopping anti-competitive practices rather than penalising companies financially.

The European Union (EU) is expected to impose a modest antitrust fine on Google for alleged anti-competitive actions within its adtech sector. This fine is anticipated to be significantly lower than the €4.3bn penalty imposed in 2018 over Google's Android operating system. The new EU antitrust chief, Teresa Ribera, aims to focus on ending harmful practices rather than imposing large financial penalties [1].

The EU's four-year investigation, triggered by a complaint from the European Publishers Council, led to charges against Google in 2023. The allegations include favoring Google's own advertising services over competitors. Ribera's approach marks a shift from her predecessor, Margrethe Vestager, who relied heavily on punitive measures [1].

Google has previously criticized the EU's interpretation of the adtech market, arguing that both advertisers and publishers have substantial choices. The company has also highlighted that it will not be forced to divest part of its adtech business, which includes tools like DoubleClick for Publishers and the AdX exchange. The EU has not commented on the matter, but sources familiar with the investigation suggest that Ribera is more interested in compliance with regulations than in imposing structural remedies [1].

The expected fine is a result of the EU's ongoing efforts to ensure fair competition in the digital advertising market. Google's advertising revenue, which includes services like Search, YouTube, Gmail, and Google Play, reached $264.6 billion in 2024, accounting for more than three-quarters of the company's total revenue [1].

Google's recent investments in Virginia to expand AI and cloud data centers and its ongoing disputes with EU regulators highlight the company's strategic focus on growth and innovation. These developments underscore the complex regulatory environment in which Google operates, as well as the broader challenges faced by tech firms in complying with EU competition laws [2].

References:
[1] https://www.pymnts.com/cpi-posts/alphabets-google-faces-eu-antitrust-fine-over-adtech-practices/
[2] https://cryptorank.io/news/feed/a8a8a-google-in-modest-eu-fine-for-its-adtech-unit