EU fines Google €2.95bn for abusing ad‑tech dominance

The European Commission on Friday fined Google €2.95 billion ($3.5 billion) for breaching EU competition rules by favouring its own advertising technology products, and ordered the U.S. company to stop practices the regulator said created conflicts of interest across the digital ad supply chain.

The commission found that Google had abused its market position in ad tech — the software and services that decide which adverts are placed online and where — by steering business to its own tools to the detriment of competitors and customers. Commissioners said the conduct harmed publishers, advertisers and rival ad tech providers and must be corrected to restore effective competition.

The decision, announced more than two years after the commission first opened formal antitrust charges, represents the bloc’s fourth major penalty against the company in a decade-long scrutiny of its market conduct. In addition to the fine, the commission ordered Google to end the specific “self‑preferencing practices” it identified and to take steps to remove conflicts of interest that arise when a single company supplies multiple parts of the ad‑tech chain.

European regulators said the remedies must be implemented without delay and warned they could seek stronger measures, including divestitures, should Google fail to bring its practices into compliance. The commission's formal ruling follows a complaint filed by the European Publishers Council and an extended investigation into how programmatic advertising and related tools operate across online markets.

Google said the commission’s findings were wrong and announced it would appeal. In a statement, Lee‑Anne Mulholland, Google’s global head of regulatory affairs, said the ruling “imposes an unjustified fine and requires changes that will hurt thousands of European businesses by making it harder for them to make money.” The company argued that there are many alternatives for ad buyers and sellers and that providing integrated services is not inherently anti‑competitive.

U.S. President Donald Trump criticized the decision on social media, calling it “very unfair” and saying he might open an investigation into European tech practices that could lead to trade measures. The comments underscored mounting transatlantic tension over regulation of major technology platforms.

Regulators in the European Union have increasingly targeted dominant digital platforms for alleged anti‑competitive practices in recent years; the commission previously threatened structural remedies in past probes but in this case stopped short of ordering a breakup. The ad‑tech sector has been a particular focus because it underpins a large portion of online publishers’ revenue and advertisers’ ability to reach audiences.

Market participants said the ruling could prompt changes in how publishers sell inventory and how advertisers buy space, and could accelerate the development and adoption of alternative ad‑tech solutions. Analysts caution that any operational changes mandated by the commission could take time to implement and may lead to short‑term disruption for publishers and advertisers.

The commission did not set a detailed timeline for compliance in its public announcement. Google’s appeal will move the dispute into the European courts, where the company has successfully challenged previous fines and regulatory orders. The outcome of that process will determine whether the commission will press for more intrusive remedies or accept modified arrangements to alleviate the conflict‑of‑interest issues the regulator identified.

The case highlights the broader global push to rein in the market power of dominant platforms and to increase transparency and competition in digital advertising. Regulators in other jurisdictions have pursued parallel inquiries and legislation aimed at the same market dynamics that attracted the commission’s scrutiny.

European officials said the decision is intended to protect the competitive functioning of ad markets and to preserve choices for publishers and advertisers. Google and its advisers will now weigh legal options while industry stakeholders evaluate how the ruling may reshape commercial arrangements and technology adoption across the online advertising ecosystem.