EU imposes a fine of $3.5 billion on Google in connection with an antitrust case related to their ad-tech business practices
The European Commission has imposed a fine of 2.95 billion euros ($3.5 billion) on Google for breaching competition rules related to its ad-technology services. This is the fourth time Brussels has penalised Google in an antitrust case.
The investigation, which began in 2014, found that Google abused its dominant position in the ad-technology ecosystem. The Commission believes Google's practices led to higher marketing costs for advertisers, which might have been passed on to consumers through higher prices, and lower revenue for publishers, potentially resulting in lower quality and higher subscription costs for consumers.
Google has vowed to appeal the decision, stating it imposes an unjustified fine and requires changes that will hurt thousands of European businesses. The tech giant has 60 days to come up with proposed remedies.
Meanwhile, in a separate U.S. case, the Justice Department has asked a federal judge to force Google to sell off its AdX and DFP services. The remedy hearings for this case are scheduled to move later this month. It's important to note that there are no search results indicating that any U.S. authorities have sued Google to force the sale of Google AdX and DFP.
Google has already avoided a breakup earlier this week in the U.S., where it's under fire on a separate front. A U.S. federal judge found Google had an illegal monopoly in online search, but rebuffed the government's attempt to force a sale of its Chrome browser.
Authorities in Canada and Britain have also targeted Google over its conduct in the digital ad industry. The commission's penalty is the same conduct that the Justice Department is investigating in the separate U.S. case.
The European Commission opened a formal investigation into online display advertising in June 2021. The investigation focused on Google's AdX exchange and DFP ad platform. If Google doesn't come up with a viable plan, the Commission may impose an appropriate remedy.
The remedy hearings for the U.S. case are scheduled to move later this month, as Google faces scrutiny on both sides of the Atlantic. The tech giant will need to navigate these challenges carefully to maintain its dominant position in the digital ad industry.
