EU Imposes Record Fine on Google for Ad Dominance Abuses

Mon Oct 20 2025 13:17:01 GMT+0300 (Eastern European Summer Time)

The European Commission has fined Google €2.95 billion for unfair competition practices in the advertising technology sector, marking a significant move against the tech giant's market influence.

In a landmark ruling, Google has been fined €2.95 billion by the European Union for abusing its dominant position in the ad tech market. The Commission found that Google prioritized its own advertising technology over competitors', hindering market fairness. Google plans to appeal the decision, arguing that the penalties are unjust and detrimental to European businesses.

The European Union has levied a hefty fine of €2.95 billion (£2.5 billion) on Google for allegedly misusing its dominant position in the online advertising sector. The European Commission announced the decision, stating that Google had favored its own products in the advertising technology domain, adversely affecting competitors and the overall market.

This action highlights the escalating scrutiny from regulatory bodies worldwide concerning major tech companies. Google is now facing increasing pressure to reform its advertising practices to comply with competition laws.

In a statement, Google expressed its dissatisfaction with the ruling, calling it 'wrong' and announcing plans to appeal the fine. Lee-Anne Mulholland, Google's global head of regulatory affairs, contended that the imposed fine is unjustified and that the adjustments mandated by the Commission would adversely impact numerous European businesses, complicating their revenue-generating capabilities.

According to the European Commission, Google engaged in 'self-preferencing' its own advertising exchange, AdX, effectively sidelining competing exchanges that facilitate real-time ad transactions. This practice led to higher costs for competitors and reduced financial returns for publishers, potentially resulting in increased costs for consumers.

The sanction represents one of the largest fines ever issued to a tech company by the EU for breaching competition regulations. It marks the third instance of Google being penalized for similar violations, following a €4.34 billion fine in 2018 concerning its Android operating system.

Teresa Ribera, the Executive Vice President of the Commission, emphasized that the fine was escalated due to Google’s repeated infractions against competition laws. The tech giant has 60 days to outline the changes it intends to implement in its operations, or the Commission will impose its own solution. Ribera hinted that a substantial restructuring of Google's ad tech division might be necessary to resolve the conflict of interest.

The decision arrived against a backdrop of heightened tensions between EU regulations and US technology firms, with concerns voiced at various government levels about the implications of these sanctions.