The European Commission announced on Friday that it is fining Google with 2.95 billion euros (3.45 billion dollars) for breaching EU competition rules in the field of advertising technologies („adtech”). Trump threatens the EU with retaliation.
The Commission stated that Google favored its own online display technology services over rivals and online publishers and abused its market power from 2014 until now, as reported by AFP and Reuters.
The Commission believes that "Google has acted in favor of its own online display advertising technology services, to the detriment of competing providers of advertising technology services, advertisers, and online publishers."
In its decision, the European Commission orders the company to end these self-preferencing practices and to "take measures to put an end to the inherent conflicts of interest in the adtech supply chain."
Google now has 60 days to inform Brussels of its intentions.
Fourth EU fine for Google
This is the fourth penalty Google has received in its ten-year battle with EU competition regulators.
The measure taken by the European Commission was triggered by a complaint from the European Publishers Council and comes in the context of American President Donald Trump's threat to retaliate against the European Union for any action against major technology companies.
The EU competition authority initially intended to impose the fine on Monday, but opposition from the EU trade chief, Maros Sefcovic, due to concerns about the impact of American tariffs on European cars, thwarted the antitrust chief's plan in the EU, Spaniard Teresa Ribera.
The Commission reiterated its preliminary view that Google should divest some of its services but stated that it wants to first hear and assess Google's compliance efforts. "Google must now present a serious solution to remedy the conflicts of interest, and if it does not, we will not hesitate to impose severe corrective measures," Ribera said in a statement.
"Digital markets exist to serve people and must be based on trust and fairness. And when markets fail, public institutions must act to prevent dominant actors from abusing their power," she said.
Google has criticized the EU decision and stated that it will challenge it in court.
The latest fine compares to the record 4.3 billion euro fine imposed on Google in 2018, followed by the 2.42 billion euro fine in 2017 and the 1.49 billion euro fine in 2019. Reuters reported last week that the fine would be modest, marking a change in Ribera's approach from the large and discouraging fines imposed by her predecessor.
Trump threatens the EU
US President Donald Trump criticized the European Union on Friday for imposing an "unfair" antitrust fine on Google.
"Europe has today hit another great American company, Google, with a 3.5 billion dollar fine, effectively taking money that would otherwise have been invested in American investments and jobs," Trump said on Truth Social. "It's very unfair, and American taxpayers will not accept this!" he said.
Trump said the fine follows a series of other cases, including that of Apple, to which Brussels ordered in 2016 to pay Ireland outstanding taxes totaling 13 billion euros plus interest.
"They should get their money back!" he said, adding that otherwise, he will initiate procedures to apply retaliatory tariffs to "nullify unfair sanctions."