Google must pay a €2.95 billion ($3.5 billion) fine after the EU’s executive branch, the European Commission, determined that the tech giant breached antitrust law by impeding competition in the display advertising market.
The commission said in a statement published today that Google abused its dominance in the space by giving preference to its own ad exchange, thereby blocking out competitors and harming advertisers, publishers, and other adtech companies.
As part of the decision, Google has been ordered to put an end to some self-preferential practices and “cease its inherent conflicts of interest along the adtech supply chain” within 60 days, the regulatory body said.
“Digital markets exist to serve people and must be grounded in trust and fairness,” said Teresa Ribera, the Commission’s top antitrust enforcer. “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.”
Ribera added that the Commission would “not hesitate to impose strong remedies” should Google not comply with the order to change its business practices.
Some activists are already celebrating the decision. Timothy Cowen, co-founder of the advocacy group Movement for an Open Web, said in a statement: “It’s great to see that the European Commission is standing up for consumers, and for fairness. This should be seen as a signal that the EU will not be intimidated and understands that the rule of law is important.”
Google plans to appeal the decision.
In a statement shared with ADWEEK, the company’s vice president and global head of regulatory affairs Lee-Anne Mulholland called the decision “wrong,” arguing that “[i]t imposes an unjustified fine and requires changes that will hurt thousands of European businesses by making it harder for them to make money.” She added: “There’s nothing anticompetitive in providing services for ad buyers and sellers, and there are more alternatives to our services than ever before.”
AdWeek
