The European Commission has waged a €2.95 billion fine against Google for “abusing its dominant position” in advertising technology. In its announcement, the Commission claims that Google’s alleged anticompetitive practices have increased costs for advertisers and publishers, potentially raising prices for consumers as a result, The Verge reported.
The Commission has ordered Google to come up with a plan to stop its anticompetitive practices that it must submit within 60 days. “If it fails to propose a viable plan, the Commission will not hesitate to impose an appropriate remedy,” the Commission states, adding that the solution may involve forcing Google to sell off parts of its ad tech business.
The European Commission opened an investigation into Google’s advertising technology business in June 2021, and later brought up the possibility of divesture in 2023. The US Department of Justice similarly asked a federal judge to break up Google’s ad tech business after determining that it violates antitrust laws.
The European Commission reported: The European Commission has fined Google €2.95 billion for breaching EU antitrust rules by distorting competition in the advertising technology industry.
It did so by favoring its own online display advertising technology services to the detriment of competing providers and advertising technology and services to the detriment of competing providers of advertising technology services, advertiser and online publishers.
BBC reported: Google has been fined €2.95bn 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 favoring its own products for displaying online ads, to the detriment of rivals.
It comes amid increased scrutiny by regulators worldwide over the tech giant’s empire in online search and advertising.
Google told the BBC the Commission’s decision was “wrong” and it would 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,” said Lee-Anne Mulholland, global head of regulatory affairs at Google.
“There’s nothing anti-competitive in providing services for ad buyers and sellers, and there are more alternatives to our services than ever before.”