EU fines Google €2.95 billion over adtech competition breach

The European Commission has imposed a fine of €2.95 billion on Google for violating EU antitrust rules by distorting competition in the advertising technology sector. The penalty was determined under the Commission’s 2006 guidelines on fines.

According to the Commission, Google abused its dominant position in the markets for publisher ad servers and programmatic ad buying tools by favouring its own ad exchange, AdX, to the disadvantage of rival providers, advertisers, and online publishers. The investigation found that the company’s practices between 2014 and the present strengthened AdX’s role in the adtech supply chain and allowed the company to charge higher fees.

The Commission cited examples, including advance information being given to AdX during auctions and Google Ads predominantly placing bids on AdX rather than on competing exchanges. Such conduct, it said, foreclosed competition and reinforced the company's market dominance.

Google has been ordered to end these practices and address conflicts of interest within its adtech operations. The company has 60 days to submit details of proposed compliance measures. The Commission has indicated that structural remedies, including a potential divestment of some services, may be necessary if Google’s proposals are deemed insufficient.

The case follows formal proceedings launched in June 2021 and a Statement of Objections issued in June 2023, to which the company responded later that year.

Commenting on the decision, Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition, said, “Today’s decision shows that Google abused its dominant position in adtech, harming publishers, advertisers, and consumers. This behaviour is illegal under EU antitrust rules. 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. 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. True freedom means a level playing field, where everyone competes on equal terms and citizens have a genuine right to choose.”