EU fines Google $3.5 billion for abusing dominance in digital ad market

US condemns decision as discriminatory, raising trade tensions with EU

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What just happened? European regulators have imposed a nearly $3.5 billion fine on Google over the tech giant's abuse of its dominant position in the digital advertising market. The European Commission announced the penalty after determining that Google's advertising-technology tools unfairly disadvantaged rivals and strengthened its own hold on the lucrative ad-tech supply chain.

The investigation, which spanned over four years, focused on Google's practices linking advertisers to publishers through various proprietary platforms, such as Google Ads, DV360, the DoubleClick for Publishers server, and its AdX ad exchange. According to the Commission, Google leveraged its dominant software used by publishers to favor its ad exchange by granting it advance knowledge of competing bids and having its advertiser tools disproportionately place bids within Google's ecosystem.

Regulators concluded that these practices intentionally skewed competition, locking both publishers and advertisers more tightly into Google's orbit while undermining rival ad exchanges.

The European Commission has ordered Google to halt these "self-preferencing" practices and to propose reforms within 60 days. Google is required to submit its compliance plan; however, if regulators determine that this doesn't fully address the conflicts of interest, they may compel the company to divest parts of its ad-tech business. Commissioners specifically highlighted the potential need for "structural remedies" if ongoing assessments show that self-corrective actions are insufficient.

This decision marks the fourth time in a decade that the EU has fined Google for antitrust abuses, though the action comes at a delicate moment in global trade politics. US President Donald Trump swiftly condemned the penalty, describing it as discriminatory toward American companies and vowing to launch a Section 301 investigation that could pave the way for new tariffs against the European bloc. Industry analysts and political observers noted that the timing was sensitive, with EU and US negotiators still working through the details of major trade and tariff agreements.

Google announced its intention to appeal the ruling, defending its ad-tech structure by arguing that it increases choice for advertisers and publishers. The company's head of regulatory affairs, Lee-Anne Mulholland, described the fine as "unjustified" and warned that the mandated changes could have adverse effects on thousands of European businesses that rely on digital ad revenue. Google maintains there are "more alternatives to our services than ever before" and disputes the Commission's findings of anti-competitive conduct.

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Under EU law, holding a dominant market position is not, in itself, illegal, but the abuse of such power – via methods that are shown to limit competition – constitutes a violation. The Commission arrived at the fine by weighing the duration and seriousness of the practices, as well as Google's previous antitrust history. Those harmed by Google's conduct, including publishers and advertisers, now have the option to seek damages in national courts using the Commission's decision as binding proof.

The full details of the case are expected to be made public by the European Commission as confidentiality concerns are resolved.