Google faces a substantial fine of 2.950 million euros for alleged misconduct in the online advertising market in Brussels.
The European Commission (EC) has imposed a significant fine of €2.95 billion on Google for abusing its dominant position in the online advertising market. This penalty, announced on Friday, is the second-highest ever imposed by the European Commission for monopolistic abuses.
The investigation into Google's online advertising business began in 2016, following concerns about the company's practices. The EC found that Google has been abusing its dominant position in these markets since at least 2014, favouring its AdX platform in DoubleClick for Publishers (DFP) auctions.
Google's goal was to give AdX a competitive advantage and strengthen its central role in the online advertising business. The EC concluded that Google's actions were in violation of EU antitrust rules, as they disadvantaged competitors and potentially harmed publishers, advertisers, and consumers.
Margrethe Vestager, the European Commission's Executive Vice-President, stated that Google abused its dominant position in digital advertising, to the detriment of all stakeholders involved. This behaviour, she said, is illegal under EU antitrust rules.
Google must immediately cease these anti-competitive practices and take measures to avoid conflicts of interest throughout the supply chain. The company has 60 days to inform the European executive about its intended course of action.
The fine is behind the €4.34 billion fine also imposed on Google for violating EU competition rules through Android. Google offers four main services in the online advertising sector: Google Ads, DV 360, DoubleClick for Publishers (DFP), and AdX.
The EC's investigation confirmed in 2018 that Google's practices in this sector were contrary to EU law. Google provided AdX with information about the highest bid made by a competitor that it had to beat to win the contract, giving AdX an unfair advantage in Google Ads and DV 360 purchasing tools, which mainly offered bids made on Google's platform.
This conduct aimed to increase Google's ability to charge high prices for its advertising service. The authorities concluded that Google must sell part of its online advertising business as a solution to address the competition concerns.
At current exchange rates, the €2.95 billion fine is approximately $3.465 billion. Google has been given 60 days to respond to the decision and must ensure compliance with the EC's ruling.
