The European Union has fined Google €2.95 billion ($3.47 billion) for abusing its dominance in the online advertising sector, marking one of the bloc’s toughest actions yet against a US technology giant.
Announcing the decision on Friday, EU competition chief Teresa Ribera said Google’s conduct violated European antitrust rules by favouring its own advertising services over rivals.
“Google abused its dominant position in adtech, harming publishers, advertisers, and consumers. This behaviour is illegal under EU antitrust rules,” Ribera declared.
The ruling comes despite warnings from former US President Donald Trump, who had cautioned Brussels against targeting American tech firms.
Reports earlier this week suggested hesitation within the EU’s executive body over the potential risk of US retaliation, highlighting divisions before the sanction was approved.
The fine is part of a long-running probe launched in 2021, which concluded in 2023 with recommendations that Google divest parts of its ad services to ensure fair competition.
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Google, owned by Alphabet Inc., swiftly rejected the ruling and vowed to challenge it in court.
“The Commission’s decision is wrong. It imposes an unjustified fine and requires changes that will hurt thousands of European businesses by making it harder for them to make money,” said Lee-Anne Mulholland, Google’s global head of regulatory affairs.
The fine comes in a difficult week for the company. On Wednesday, a US federal jury ordered Google to pay $425 million over privacy violations involving smartphone app data, while France’s data protection authority levied a €325 million penalty for breaches of internet cookie laws.
Still, Google secured a partial victory in the United States when a federal judge rejected a government demand to break up its Chrome browser, though the court imposed strict measures to restore competition in online search.
The latest EU penalty adds to a series of record fines levied against Google in recent years, underscoring Europe’s determination to rein in Big Tech’s dominance in the digital economy.