Google hit with 2.95-billion-euro EU antitrust fine over adtech practices

Alphabet’s Google was hit with a 2.95-billion-euro (S$4.4 billion) EU antitrust fine on Friday (Sep 5) for anti-competitive practices in its lucrative adtech business, marking its fourth penalty in its decade long fight with EU competition regulators.

The move by the European Commission was triggered by a complaint from the European Publishers Council and comes amid a threat by US President Donald Trump to retaliate against the European Union for any push against Big Tech.

The EU competition enforcer had originally planned to hand out the fine on Monday but opposition from EU trade chief Maros Sefcovic on concerns about the impact on US tariffs on European cars derailed EU antitrust chief Teresa Ribera’s plan.

The Commission said Google favoured its own online display technology services to the detriment of rivals and online publishers and that it abused its market power since 2014 until today.

It ordered Google to stop the self-preferencing practices and take measures to cease its inherent conflicts of interest. The company has 60 days to inform the Commission how it plans to comply with this order.

The Commission reiterated its preliminary view that Google should divest part of its services but said it wants to first hear and assess Google’s compliance efforts.

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“Google must now come forward with a serious remedy to address its conflicts of interest, and if it fails to do so, we will not hesitate to impose strong remedies,” Ribera said in a statement.

“Digital markets exist to serve people and must be grounded in trust and fairness. And when markets fail, public institutions must act to prevent dominant players from abusing their power,” she said.

Google criticised the EU decision and said it would challenge it in court.

“The European Commission’s decision about our ad tech services is wrong and we will 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,” Lee-Anne Mulholland, vice-president, Global Head of Regulatory Affairs, said in a statement.

“There’s nothing anticompetitive in providing services for ad buyers and sellers, and there are more alternatives to our services than ever before.”

The latest fine compared with a record 4.3 billion euro penalty handed out to Google in 2018, 2.42 billion euros in 2017 and a 1.49 billion euros in 2019.

Reuters reported last week that the fine would be modest, marking a change in Ribera’s approach with her predecessor’s deterrent hefty fines. REUTERS