EU Slaps Google with €2.95 Billion Fine for Antitrust Violations

On September 5, 2025, the European Commission imposed a €2.95 billion ($3.45 billion) fine on Google for antitrust violations in its advertising technology (adtech) business. The Commission determined that since 2014, Google had abused its dominant market position by favoring its own display advertising technology services, particularly its ad exchange AdX, to the detriment of rival adtech providers, advertisers, and online publishers. This self-preferencing practice allegedly led to higher costs for competitors and publishers, potentially resulting in increased prices for consumers.

The Commission's investigation revealed that Google holds a dominant position in two European Economic Area-wide markets: publisher ad servers (via DoubleClick for Publishers, "DFP") and programmatic ad-buying tools for the open web (Google Ads and DV360). The Commission found that Google systematically favored its own ad exchange, AdX, by providing it with advantages in auctions, such as signaling the value of the leading rival bid through DFP. Additionally, Google's buying tools steered demand disproportionately to AdX, making it more attractive to publishers and rendering competitors' exchanges less viable.

In addition to the financial penalty, the Commission ordered Google to cease these self-preferencing practices and to implement measures to eliminate inherent conflicts of interest within its adtech supply chain. Google has 60 days to present a plan for compliance. Failure to provide a viable solution may result in stronger remedies, including potential divestiture of parts of its adtech business.

This fine marks the fourth major antitrust penalty imposed on Google by the European Union since 2017. Previous fines include:

• €2.42 billion in 2017 for favoring its own shopping comparison service.
• €4.34 billion in 2018 for illegal practices regarding Android mobile devices.
• €1.49 billion in 2019 for abusive practices in online advertising.

Despite these substantial fines, critics argue that financial penalties alone have not been effective in fostering market competition. Some suggest that structural remedies, such as company breakups, may be more effective in ensuring compliance and promoting fair competition.

In response, Google criticized the decision as "wrong" and announced plans to appeal, arguing that the ruling could harm European businesses by making it harder for them to generate revenue.

The decision has also drawn international attention, with former U.S. President Donald Trump condemning the fine as unfair and threatening retaliatory tariffs on European goods.

This case underscores the ongoing regulatory scrutiny of major tech companies and highlights the tensions between the European Union and the United States over digital market regulations. It also raises questions about the effectiveness of financial penalties versus structural remedies in addressing antitrust violations in the rapidly evolving digital economy.