BRUSSELS :Alphabet’s Google was hit with a 2.95-billion-euro ($3.45 billion) European Union antitrust fine on Friday for anti-competitive practices in its lucrative adtech business, a sharp sanction that riled up U.S. President Donald Trump.
The fine, the fourth penalty Google has faced in its decade-long fight with EU competition regulators, follows bubbling trade tensions between major global powers and U.S. threats of retaliation over EU scrutiny of American tech firms.
Trump said in a post on Truth Social that the action was “unfair” and “discriminatory” and later told reporters he will take the matter up with the EU directly.
“We cannot let this happen to brilliant and unprecedented American Ingenuity and, if it does, I will be forced to start a Section 301 proceeding to nullify the unfair penalties being charged to these Taxpaying American Companies,” Trump said.
Section 301 of the Trade Act of 1974 allows the United States to penalize foreign countries that engage in acts that are “unjustifiable” or “unreasonable,” or burden U.S. commerce.
The European Commission’s action was triggered by a complaint from the European Publishers Council. Trump, who has hit Europe with trade tariffs, has threatened to retaliate against the EU for any pushback against Big Tech.
“I will be speaking to the European Union,” Trump told reporters at the White House on Friday.
While Google plans to appeal, the Commission has warned of stronger remedies – including potential divestitures – if the company fails to address its conflicts of interest. The case underscores growing transatlantic friction over digital market regulation and the EU’s push to rein in dominant platforms.
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 U.S. tariffs on European cars derailed EU antitrust chief Teresa Ribera’s plan.
The Commission said Google favoured its own online display technology services that reinforced its own ad exchange AdX’s central role in the adtech supply chain and allowed Google to charge high fees for its service, to the detriment of rivals and online publishers.
Google has abused its market power since 2014 until today, the EU watchdog said.
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, and another 30 days to do so.
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, confirming a Reuters story last year.
“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.
‘WE WILL APPEAL’
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 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.
The European Publishers Council lamented the absence of a breakup order.
“A fine will not fix Google’s abuse of its adtech,” its executive director Angela Mills Wade said.
“Without strong and decisive enforcement, Google will simply write this off as a cost of business while consolidating its dominance in the AI (artificial intelligence) era, perpetuating unfair competition and weakening news media and publishing companies which rely on advertising revenues,” she said.
Cori Crider, senior fellow at Future of Tech Institute and an honorary professor at UCL Laws, urged the Commission to take a drastic step with a breakup order.
“Europe made an important stand for the rule of law today by pressing ahead with this first-step fine in the face of Trump and Big Tech’s bullying,” she said. “But I want to be clear: only a break-up will fix Google’s monopoly, unlock this €120bn market for European business, and save our dying media sector.”
Google is scheduled to go to trial in the United States on September 22 to determine remedies in a separate case brought by the U.S. Justice Department in which a judge found the company holds illegal monopolies in online advertising technology.
Google’s 2024 advertising revenue, including from search services, Gmail, Google Play, Google Maps, YouTube, Google Ad Manager, AdMob and AdSense, amounted to $264.6 billion or 75.6 per cent of total revenue. It is the world’s dominant digital-advertising platform.
Google does not provide revenue figures for its adtech business which relates to advertising on other websites and not search ads.
($1 = 0.8542 euros)
