Google hit with $3.5 billion fine for unfair advertising practices

European Union regulators on Friday hit Google with a 2.95 billion euro ($3.5 billion) fine for breaching the bloc’s competition rules by favoring its own digital advertising services, but the bloc's latest move to crack down on Big Tech companies drew outrage from President Donald Trump.

The European Commission, the 27-nation bloc’s executive branch and top antitrust enforcer, also ordered the U.S. tech giant to end its “self-preferencing practices” and stop “conflicts of interest” along the advertising technology supply chain.

It’s the fourth time Brussels has sanctioned Google with a multibillion-euro fine in an antitrust case, in a wider battle with regulators that dates back to 2017.

Trump, whose administration has lashed out at the bloc over digital regulations and taxes imposed on U.S. tech companies, said the EU fine was “effectively taking money that would otherwise go to American Investments and Jobs."

“Very unfair, and the American Taxpayer will not stand for it!" he said in a post on Truth Social. "As I have said before, my Administration will NOT allow these discriminatory actions to stand.”

The Commission said its investigation found that Google “abused its power” by favoring its own online display advertising technology services to the detriment of competitors, online advertisers and publishers.

The investigation focused on Google's AdX exchange and DFP ad platform, tools that bring together advertisers, who want to market their products, with online publishers, who want to sell commercial space on their websites.

The company has 60 days to come up with proposed remedies.

If it doesn't come up with “a viable plan, the Commission will not hesitate to impose an appropriate remedy," Teresa Ribera, the European Commission’s executive vice-president overseeing competition affairs, said in a statement posted online.

“At this stage, it appears that the only way for Google to end its conflict of interest effectively is with a structural remedy, such as selling some part of its Adtech business," Ribera said.

But the Commission said it first wants to "hear and assess" the company's proposal.

Google said the decision was “wrong” and vowed to appeal.

“It imposes an unjustified fine and requires changes that will hurt thousands of European businesses by making it harder for them to make money,” Lee-Anne Mulholland, the company’s global head of regulatory affairs, said in a statement.

Ribera said that Google's “illegal practices” resulted in advertisers facing higher marketing costs that they likely passed on to European consumers through higher prices for products and services. At the same time, it also meant lower revenue for publishers, like news sites, which might have resulted in lower quality and higher subscription costs for consumers.

The decision was overdue, coming more than two years after the European Commission announced antitrust charges against Google. It also comes amid renewed tensions between Brussels and Washington over trade, tariffs and technology regulation.

The commission had said in 2023 that the only way to satisfy antitrust concerns about Google’s lucrative digital ad business was to sell off parts of its business.

Top EU officials have previously said that they were seeking a forced sale because past cases that ended with fines and requirements for Google to stop anti-competitive practices have not worked, allowing the company to continue its behavior in a different form.

The commission’s penalty follows a formal investigation into online display advertising that it opened in June 2021, which found that since 2014, Google “abused” its dominant position in the ad-technology ecosystem.