Anna Hartz
EU Says Google Rigged Online Ad Market, Issues Record Fine
For years, the European Union has been at odds with some of the biggest American technology companies.
From online privacy to competition rules, Brussels has tried to hold these firms accountable in ways that often go far beyond what U.S. regulators demand.
Now, another clash is underway, this time over online advertising.
Abuse of Its Position
The European Commission has fined Google €2.95 billion, according to El Economista.
Officials say the company abused its dominant position in online advertising technology and created unfair competition.
The fine comes after a long investigation into how Google runs its ad business.
Taking Advantage
According to EU regulators, Google gave its own services advantages over rivals in the adtech market.
That includes both publishers who sell space and advertisers who want to buy it.
The Commission says Google’s ad server, DFP, and its tools for programmatic ad buying, like Google Ads and DV360, worked in a way that steered business toward Google’s own ad exchange, known as AdX.
Insider Information
Investigators found that AdX was often given inside information about competitors’ bids. That allowed Google’s platform to outbid rivals and win auctions.
Over time, AdX became the most attractive exchange. The Commission also said Google Ads focused its offers on AdX instead of competing on other exchanges, further boosting Google’s dominance.
A Deliberate Choice
The Commission concluded that these were deliberate choices. By giving AdX an advantage, Google increased its power in the market and collected more fees.
Brussels has now ordered the company to stop these practices and come up with a plan to resolve conflicts of interest. Google has 60 days to respond.
Further Restrictions Could Come
EU competition chief Teresa Ribera said Google’s actions hurt publishers, advertisers, and consumers.
She warned that if Google does not propose effective changes, stricter remedies could follow.
A Sizable Fine
The size of the fine reflects the seriousness and duration of the violations, as well as the money earned from them.
It also reflects the fact that Google has faced similar penalties before. In 2018, the EU fined the company €4.125 billion for restricting competition in the mobile phone market.
The decision comes at a delicate moment. Brussels is also trying to finalize a trade agreement with Washington and avoid tariff disputes. Officials are moving carefully, but they say the rules must be enforced.
