Google Faces €2.95 Billion EU Fine for Advertising Monopoly

Google has been fined €2.95bn (£2.5bn) by the EU for allegedly abusing its power in the ad tech sector - the technology which determines which adverts should be placed online and where. The European Commission said on Friday the tech giant had breached competition laws by favouring its own products for displaying online ads, to the detriment of rivals.

This fine emerges amidst escalating scrutiny by regulators worldwide over the tech giant's empire in online search and advertising. Google expressed its dissent, stating that the Commission's decision was 'wrong' and that it plans to appeal.

Lee-Anne Mulholland, Google's global head of regulatory affairs, criticized the decision: 'It imposes an unjustified fine and requires changes that will hurt thousands of European businesses by making it harder for them to make money.' She further argued that there is a variety of alternatives to Google's services.

US President Donald Trump has also condemned the ruling, terming it 'very unfair.' He has previously threatened to investigate European tech practices that could bring about tariffs, asserting that 'the European Union must stop this practice against American companies, IMMEDIATELY!'

The Commission accused Google of 'self-preferencing' its own technology, particularly its advertising exchange, AdX, over competing platforms. Competitors and publishers have reportedly faced heightened costs and diminished revenues as a direct result of these practices, with potential implications for consumer pricing.

This recent fine marks the third instance of Google's regulatory violations, with the Commission highlighting the significance of its historic non-compliance when determining the fine amount. Teresa Ribera, executive vice president of the Commission, stated, 'In line with our usual practice, we increased Google's fine since this is the third time Google breaks the rules of the game.' The Commission has demanded that Google implement necessary changes within 60 days or face further regulatory action.

As this ruling adds another layer of complexity to the ongoing debate over tech regulation, industry stakeholders and governments will continue to watch how these developments unfold.