EU's €2.95 Billion Fine on Google: A Growing Concern for Competition

Wed Oct 22 2025 23:50:45 GMT+0300 (Eastern European Summer Time)

The European Commission imposes a hefty fine on Google for abusing its dominance in the online advertising sector, prompting calls for regulatory reforms.

In a significant ruling, the European Commission has fined Google €2.95 billion for anti-competitive practices in the ad tech market. This is the third instance of Google being penalized for such violations. The tech giant, which plans to appeal the decision, is accused of preferring its own advertising products over competitors, leading to higher costs for businesses and consumers alike.

The European Commission has fined Google €2.95 billion (£2.5 billion) for allegedly abusing its power in the ad tech sector - the technology that determines which adverts should be placed online and where.

The Commission declared on Friday that Google had violated competition laws by favoring its own products for displaying online ads to the detriment of rivals.

This decision comes amid heightened scrutiny from regulators worldwide regarding the tech company's enormous influence over online search and advertising.

In response to the ruling, Google stated it believes the Commission's decision is wrong and announced its intention to appeal.

Lee-Anne Mulholland, Google's global head of regulatory affairs, remarked, It 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 anti-competitive in providing services for ad buyers and sellers, and there are more alternatives to our services than ever before.

According to the Commission, Google's practices involved self-preferencing, wherein the company intentionally promoted its own advertising exchange, AdX, over competing ones where ads are bought and sold in real-time. This conduct resulted in increased costs for competitors and publishers, which the Commission suggests may have ultimately affected consumers through higher service prices.

As part of its findings, the regulator ordered Google to terminate these practices and pay the nearly €3 billion fine.

Third Time Rules Broken

This fine marks one of the largest penalties that the European Commission has imposed on tech companies for breaching competition rules. Google's past infractions include a €4.34 billion fine in 2018 for using its Android operating system to maintain its dominant market position.

Teresa Ribera, Executive Vice President of the Commission, indicated that Google's previous violations were factored into the severity of the latest fine. Ribera emphasized the necessity for Google to present a concrete plan detailing how it intends to rectify its business practices within 60 days, or else the Commission might enforce its solutions.

At this stage, it appears the only way for Google to effectively end its conflict of interest is with a structural remedy, such as selling parts of its ad tech business, she warned.

Earlier this week, the Commission dismissed claims that it had postponed the announcement of Google’s fine amid ongoing tensions regarding EU-U.S. trade relations.