EU orders Google to end adtech conflicts of interest

EU orders Google to end adtech conflicts of interest

The European Union (EU) has delayed its immediate plans to fine Alphabet Inc.'s Google for alleged abuses in its advertising technology dominance. The decision, which was initially scheduled for September 1, has been postponed due to concerns that it could provoke a backlash from the United States, potentially derailing ongoing trade negotiations [1].

The EU's antitrust chief, Teresa Ribera, and her staff are now responding to further questions raised on the draft decision, which is expected to include a fine and a cease and desist order for Google to halt the alleged abusive practices [1]. This delay could add days or possibly weeks to the timing of the announcement, and the substance of the draft could also change as EU commission officials continue to discuss the matter with US counterparts [1].

The pending EU decision follows a four-year-long investigation triggered by a complaint from the European Publishers Council. The investigation led to charges that Google favored its own advertising services over competitors. The EU's new antitrust chief, Teresa Ribera, is adopting a more compliance-focused approach compared to her predecessor, Margrethe Vestager, who focused on imposing large financial penalties [2].

The expected fine is anticipated to be lighter compared to past penalties, reflecting Ribera's strategy of curbing anti-competitive practices rather than imposing big fines [2]. The investigation stems from a complaint by the European Publishers Council that Google favored its own advertising services over rivals, a practice that has drawn scrutiny from EU regulators [2].

Google's adtech business generated $264.6 billion in revenue in 2024, accounting for 75.6% of the company's total revenue [2]. The upcoming fine is not the first regulatory action against Google, with the EU also investigating Google's AI Overviews feature and the UK's competition watchdog looking into the company's search and search advertising dominance [2].

The EU has not demanded the divestiture of any part of Google's adtech operations, unlike previous suggestions by Vestager. Google has consistently challenged the EU's interpretation of the adtech sector, arguing that publishers and advertisers have numerous choices and that users choose its services voluntarily. However, the EU's enforcement actions continue to shape the digital competition landscape [2].

The broader regulatory environment is also influenced by developments in the U.S., where a federal court is set to rule on whether Google must spin off its Chrome browser. A ruling in favor of the U.S. Department of Justice could set a precedent for EU policy, although a European-led breakup of Google remains unlikely due to political and legal constraints [2].

The European Commission accused Google of abusing its dominance in the online AdTech industry since 2014. The regulator alleged that the company had wielded its market power on both sides of the supply chain by showing favoritism toward its own ad exchange, AdX, in matching auctions [3].

Google argued that serving both advertisers and publishers is a common industry practice, competitors operate similar AdTech businesses catering to both sides of the market, and integrated technology stacks facilitate high-quality connections between advertisers and publishers [3].

References:
[1] https://www.bloomberg.com/news/articles/2025-09-02/google-s-adtech-fine-delayed-as-eu-frets-over-trump-backlash
[2] https://www.ainvest.com/news/google-face-modest-fine-eu-ad-tech-probe-reuters-reports-2508-11/
[3] https://www.pymnts.com/legal/2025/european-commission-to-impose-modest-penalties-in-google-adtech-case/