European Union regulators on Friday hit Google with a 2.95 billion euro ($3.5 billion) fine for breaching the bloc鈥檚 competition rules by favoring its own digital advertising services, but the bloc's latest move to crack down on Big Tech companies drew outrage from President Donald Trump.
The European Commission, the 27-nation bloc鈥檚 executive branch and top antitrust enforcer, also ordered the U.S. tech giant to end its 鈥渟elf-preferencing practices鈥 and stop 鈥渃onflicts of interest鈥 along the advertising technology supply chain.
It鈥檚 the fourth time Brussels has sanctioned Google with a multibillion-euro fine in an antitrust case, in a wider battle with regulators that dates back to .
Trump, whose administration has lashed out at the bloc over digital regulations and taxes imposed on U.S. tech companies, said the EU fine was 鈥渆ffectively taking money that would otherwise go to American Investments and Jobs."
鈥淰ery unfair, and the American Taxpayer will not stand for it!" he said in a post on Truth Social. "As I have said before, my Administration will NOT allow these discriminatory actions to stand.鈥
The Commission said its investigation found that Google 鈥渁bused its power鈥 by favoring its own online display advertising technology services to the detriment of competitors, online advertisers and publishers.
The investigation focused on Google's AdX exchange and DFP ad platform, tools that bring together advertisers, who want to market their products, with online publishers, who want to sell commercial space on their websites.
The company has 60 days to come up with proposed remedies.
If it doesn't come up with 鈥渁 viable plan, the Commission will not hesitate to impose an appropriate remedy," Teresa Ribera, the European Commission鈥檚 executive vice-president overseeing competition affairs, said in a statement posted online.
鈥淎t 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," Ribera said.
But the Commission said it first wants to "hear and assess" the company's proposal.
Google said the decision was 鈥渨rong鈥 and vowed to appeal.
鈥淚t imposes an unjustified fine and requires changes that will hurt thousands of European businesses by making it harder for them to make money,鈥 Lee-Anne Mulholland, the company鈥檚 global head of regulatory affairs, said in a statement.
Ribera said that Google's 鈥渋llegal practices鈥 resulted in advertisers facing higher marketing costs that they likely passed on to European consumers through higher prices for products and services. At the same time, it also meant lower revenue for publishers, like news sites, which might have resulted in lower quality and higher subscription costs for consumers.
The decision was overdue, coming more than two years after the European Commission against Google. It also comes amid renewed tensions between Brussels and Washington over trade, tariffs and technology regulation.
The commission had said in 2023 that the only way to satisfy antitrust concerns about Google鈥檚 lucrative digital ad business was to sell off parts of its business.
Top EU officials have previously said that they were seeking a forced sale because past cases that ended with fines and requirements for Google to stop anti-competitive practices have not worked, allowing the company to continue its behavior in a different form.
The commission鈥檚 penalty follows a formal investigation into online display advertising that it , which found that since 2014, Google 鈥渁bused鈥 its dominant position in the ad-technology ecosystem.
Online display ads are banners and text that appear on websites and are personalized based on an internet user鈥檚 browsing history.
Mulholland said, 鈥淭here鈥檚 nothing anticompetitive in providing services for ad buyers and sellers, and there are more alternatives to our services than ever before.鈥
Cori Crider, a senior fellow at the Future of Technology Institute think tank, said, 鈥淓urope made an important stand for the rule of law today by pressing ahead with this first-step fine in the face of Trump and Big Tech鈥檚 bullying."
But 鈥渙nly a break-up will fix Google鈥檚 monopoly,鈥 said Crider, who's also an honorary professor at UCL Laws. 鈥淚f Europe鈥檚 enforcers flinch on a break-up in the end, Google will rightly chalk a fine up as a win.鈥
While the EU's fine is a huge sum, it's pocket change for Google, which earned $28.2 billion in revenue in the second quarter.
Google is also facing pressure on the other side of the Atlantic over its ad-tech business.
In a separate U.S. case, the Justice Department in May to force the company to sell off its AdX and DFP services. The case is scheduled to move to the penalty phase, known as remedy hearings, later this month.
The Commission said its finding that Google abused its dominance will be important for the remedy hearings because it's the same conduct that the Justice Department was investigating.
Authorities in and have also targeted Google over its conduct in the digital ad industry.
Google has already avoided a breakup earlier this week in the U.S., where it's under fire on a separate front after a U.S. federal judge found it had an illegal monopoly in online search. On Tuesday, the judge ordered a shake-up of its search engine but rebuffed the government's attempt to force a sale of its .
