EU slaps Google with $3.5 billion fine for abusing dominance in digital ads

The European Union fined Google €2.95 billion ($3.5 billion) on Friday for breaking competition rules by favouring its own digital advertising services — the fourth such penalty against the tech giant.

The European Commission said its investigation found Google “abused its power” in the online ad market, hurting rivals, advertisers and publishers. It ordered the company to end “self-preferencing practices” and resolve “conflicts of interest” in the adtech supply chain.

“At this stage, it appears that the only way for Google to end its conflict of interest effectively is with a structural remedy, such as selling some part of its Adtech business,” said EU competition chief Teresa Ribera, warning the bloc “will not hesitate to impose an appropriate remedy” if Google fails to present a viable plan within 60 days.

Google rejected the ruling and vowed to 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,” said Lee-Anne Mulholland, the company’s global head of regulatory affairs.

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Ribera said Google’s “illegal practices” led to higher costs for advertisers, which were passed on to consumers, while publishers lost revenue, forcing some to raise subscription prices or cut quality.

The case, filed more than two years ago, comes amid renewed tensions between Brussels and Washington over tariffs, trade and Big Tech regulation.