European Union fines Google $3.5 billion in landmark ad-tech antitrust ruling

European Union regulators have imposed a €2.95 billion ($3.5 billion) fine on Google for breaching competition laws by favoring its own advertising technology services. This marks the fourth multibillion-euro penalty against the tech giant in the bloc.

The European Commission, the EU’s executive arm and chief antitrust watchdog, also ordered Google to stop its “self-preferencing practices” and take action to resolve “conflicts of interest” across the digital advertising supply chain.

Google Accused of Abusing Market Dominance

Findings of the Investigation

The European Commission’s investigation concluded that Google “abused its power” in online display advertising by prioritizing its own services. These practices, according to the EU, disadvantaged competitors, raised costs for advertisers, and lowered revenue streams for publishers, including digital media outlets.

Ribera, the Commission’s executive vice-president, stated:

• “At 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.”

• She further warned that if Google does not propose an acceptable plan within 60 days, the Commission would not hesitate to impose remedies unilaterally.

Google Pushes Back Against EU Ruling

Company’s Response

Google rejected the ruling, calling it unfair. The company said the penalty is “wrong” and vowed to file an appeal.

• “It imposes an unjustified fine and requires changes that will hurt thousands of European businesses by making it harder for them to make money,” said Lee-Anne Mulholland, Google’s global head of regulatory affairs.

The company maintains that “there’s nothing anticompetitive in providing services for ad buyers and sellers, and there are more alternatives to our services than ever before.”

Wider Implications for Big Tech

Impact on Consumers and Publishers

According to Ribera, Google’s “illegal practices” forced advertisers to bear higher marketing expenses, costs that were eventually passed on to consumers through increased prices. At the same time, publishers — especially news platforms — received reduced revenue, potentially leading to lower-quality content and higher subscription fees.

Broader Regulatory Pressure

This fine is not an isolated incident. The EU had already signaled in 2023 that the only effective solution to address Google’s monopoly in digital ads was a forced divestment of parts of its ad business. Previous fines and commitments to change practices failed to curb Google’s behavior, leading to repeated violations.

Transatlantic and Global Context

Tensions Between Brussels and Washington

The ruling comes amid ongoing trade and technology tensions between the European Union and the United States. Past EU actions against Big Tech have sparked criticism from Washington, with former U.S. President Donald Trump previously condemning Brussels’ regulatory stance as anti-American.

Other Ongoing Cases

• In the U.S., the Justice Department has also demanded that Google sell its AdX and DFP platforms, with remedy hearings scheduled for late September 2025.

• Authorities in Canada and the UK are conducting similar investigations into Google’s advertising dominance.

• Earlier this week, Google narrowly avoided a breakup order in the U.S. search monopoly case, where a federal judge ordered reforms to its search engine but declined to force the sale of Chrome.

Expert Reactions

Calls for Stronger Remedies

Cori Crider, a senior fellow at the Future of Technology Institute, praised the EU for standing firm:

• “Europe 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’s bullying.”

But Crider also emphasized that fines alone may not suffice:

• “Only a break-up will fix Google’s monopoly. If Europe’s enforcers flinch on a break-up in the end, Google will rightly chalk a fine up as a win.”

Conclusion

The $3.5 billion EU fine against Google highlights growing global momentum to rein in Big Tech’s dominance, particularly in digital advertising. While the penalty is substantial, it represents a small fraction of Google’s financial might — the company earned $28.2 billion in just the second quarter of 2025.

The EU insists that structural remedies, possibly including a breakup of Google’s ad-tech arm, may be the only effective way to restore fair competition. As regulators across the U.S., Canada, and the UK tighten scrutiny, Google faces mounting pressure to reform its practices or risk being forced into unprecedented corporate restructuring.

This ruling not only sets the stage for potential industry-wide changes but also underscores Europe’s determination to act as a global leader in regulating digital markets.