EU Hits Google With Record €2.95 Billion Fine Over Ad-Tech Abuse

The European Union has imposed a record penalty of €2.95 billion (around $3.5 billion) on Google, accusing the company of abusing its dominance in the digital advertising market.

This decision was handed down on Friday, September 5, 2025, by the European Commission in Brussels (Belgium), the body responsible for enforcing EU competition laws.

According to the Commission, since 2014 Google has given an unfair edge to its own advertising technology services, particularly AdX and DFP, while restricting rivals from competing on a level playing field.

Because of these practices, advertisers had to spend more money to display their ads, while publishers received lower returns from the ads displayed on their platforms.

The distortion in the market also affected ordinary users, who ultimately faced higher prices and fewer choices in online services.

The ruling obliges Google to bring these practices to an end and submit a workable compliance plan within 60 days.

If the company’s proposal fails to convince regulators, the Commission could order the sale of parts of Google’s advertising business.

In a statement announcing the decision, European Commission Executive Vice-President Teresa Ribera declared: “Such behavior breaches EU competition law. Our ruling requires Google to pay €2.95 billion. At this point, the only effective way for the company to eliminate its conflict of interest may be through structural remedies, such as divesting segments of its ad-tech operations.”

Firms affected by Google’s conduct:

A coalition of 32 European media organizations—including Axel Springer, Mediahuis, TV2 Danmark, Prensa Ibérica, Agora, Sanoma, and Krone—has already taken legal action, claiming that Google’s dominance cut into their revenues and raised the fees they paid for advertising technology.

Other ad-tech competitors frequently cited as disadvantaged include Criteo, AppNexus (later Xandr), and The Trade Desk.

Reaction from the United States:

Former U.S. President Donald Trump dismissed the penalty as unfair targeting of American companies. He threatened to hit back with tariffs on European goods and hinted at the possibility of launching a trade probe in response.

Other major U.S. technology firms fined by the EU in recent years:

• Google / Alphabet: €2.42 billion in 2017 (Google Shopping), €4.34 billion in 2018 (Android restrictions), €1.49 billion in 2019 (AdSense contracts), and now €2.95 billion in 2025 (ad-tech).
• Apple: €13 billion in 2020 linked to Irish tax arrangements (appealed) and €1.8 billion in 2024 over music streaming restrictions.
• Amazon: A settlement in 2022 regarding marketplace dominance and roughly €1 billion in 2023 related to privacy violations.
• Meta: €1.2 billion in 2023 for unlawful data transfers to the U.S., alongside multiple fines ranging from €200–400 million for privacy breaches. 

STANCE:

U.S. President Donald Trump criticized the EU fine on Google as unfair and discriminatory against American companies. He warned that if the penalty is not reversed, he may take trade actions against the European Union, potentially including tariffs or investigations on European products (Times of India, 6 September 2025).

The European Commission explained that Google had given preferential treatment to its own advertising technology tools, harming competitors. The Commission required Google to end the controversial practices and submit a workable compliance plan within 60 days, warning that further stringent measures could follow if the plan is insufficient (European Commission Press Release, 6 September 2025).

 

QUESTIONS:

We do appreciate if you would answer the following question/s with reference of question number/s in the comments section:

Q. No. 1 Will Google challenge the €2.95 billion fine in court, and how long could the legal battle last?

Q. No. 2 Could the European Commission actually force Google to break up parts of its ad-tech business?

Q. No. 3 How will this ruling impact smaller ad-tech companies hoping to compete with Google?

Q. No. 4 Will advertisers and publishers see any real financial relief after this decision?

Q. No. 5 How might this case influence future U.S.–EU trade relations, especially given Trump’s reaction?

Q. No. 6 What changes, if any, will Google make to its global business model outside of Europe?

Q. No. 7 Could other tech giants like Amazon, Apple, or Meta face similar structural remedies in the future?

Q. No. 8 How will consumers ultimately benefit—will online prices and options really improve?

 

BACKGROUND:

The European Union’s decision to fine Google €2.95 billion stems from a long-standing concern over the company’s dominance in the digital advertising market and its potential to distort competition. Since 2014, investigations revealed that Google systematically favored its own advertising technology services, such as AdX and DFP, over competing platforms, making it difficult for rival ad-tech companies to operate on an equal footing. This preferential treatment increased costs for advertisers, reduced revenue for publishers, and limited consumer choice in online services, raising questions about fairness and market transparency. The EU’s enforcement action is also motivated by complaints from a coalition of European media organizations, who argued that Google’s practices directly undermined their business models and restricted growth opportunities in the digital advertising ecosystem. By imposing the fine and requiring Google to submit a compliance plan, the European Commission aims to restore competitive balance, protect smaller players, and ensure that the benefits of the digital advertising market are fairly distributed across all stakeholders, while signaling to other tech giants that market abuse will be rigorously monitored and penalized. 

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