The European Union has imposed a €2.95 billion (£2.5 billion) fine on Google for allegedly abusing its dominant position in the ad tech sector. The European Commission stated that Google violated competition laws by preferentially promoting its own advertising products, disadvantaging competitors. This action is part of a broader trend of increased regulatory scrutiny of major technology firms.
Google has announced plans to appeal the Commission’s decision, which it labeled as “wrong.” Lee-Anne Mulholland, Google’s global head of regulatory affairs, argued that the fine is unjustified, suggesting it could harm thousands of European businesses by complicating their revenue generation. She emphasized that there are numerous alternatives to Google’s advertising services, disputing claims of anti-competitive behavior.
The Commission’s findings included specific claims that Google intentionally favored its advertising exchange, known as AdX, over rival exchanges that facilitate real-time ad purchases. This alleged self-preferencing behavior purportedly led to higher costs for competitors and publishers, which may have ultimately resulted in increased prices for consumers.
This fine ranks among the largest penalties imposed by the European Commission against technology companies for competition rule violations. In a prior case in 2018, Google was fined €4.34 billion (£3.9 billion) for using its Android operating system to secure market dominance.
Teresa Ribera, the Commission’s executive vice president, noted that the fine was increased due to Google’s history of anti-competitive conduct, marking this situation as the third instance of rule violations by the company. The Commission has also set a 60-day deadline for Google to propose changes to its practices, warning that it may implement its own solutions if necessary. Ribera mentioned that a structural remedy, such as divesting part of Google’s ad tech business, may be required to resolve the conflict of interest.
Earlier this week, the Commission refuted claims that the announcement of the fine had been delayed due to trade tensions between the EU and the U.S.
Source: https://www.bbc.com/news/articles/c1wgn3lre14o?at_medium=RSS&at_campaign=rss