European Commission imposes €2.95 billion fine on Google for ad tech abuse

The European Commission announced on September 5, 2025, a €2.95 billion fine against Google for breaching EU antitrust rules in the digital advertising technology sector. This penalty marks the fourth prohibition decision against Google for abuse of dominance, according to the Commission's press release.

According to the European Commission, Google violated Article 102 of the Treaty on the Functioning of the European Union by favoring its own online display advertising technology services over competitors between 2014 and 2025. The Commission found Google dominant in both publisher ad servers through DoubleClick For Publishers (DFP) and programmatic ad buying tools through Google Ads and DV360 across European Economic Area-wide markets.

"Today the Commission has adopted a decision finding that Google breached EU competition rules by abusing its dominant position in the display advertising technology industry," stated Executive Vice-President Teresa Ribera in the Commission's statement. "Google abused its power by favouring its own online display advertising technology services to the detriment of its competitors, online advertisers and publishers."

The Commission's investigation revealed Google employed systematic practices to advantage its ad exchange AdX. According to the decision, Google's publisher ad server DFP informed AdX in advance about competitor bid values, allowing Google's exchange to adjust bids accordingly. Google Ads and DV360 primarily directed bids to AdX while avoiding competing exchanges, creating artificial advantages in auction processes.

"The Commission has concluded that those conducts aimed at intentionally giving AdX a competitive advantage and may have foreclosed ad exchanges competing with AdX," the Commission stated in its press release. The investigation found these practices reinforced AdX's central role while enabling Google to charge higher service fees.

Digital advertising represents the backbone of online content funding, with Google controlling multiple intermediation tools across the advertising supply chain. The Commission operates three distinct digital tools within the advertising technology industry: publisher ad servers for managing website advertising space, programmatic ad buying tools for automated campaigns, and ad exchanges facilitating real-time auction transactions.

Google operates across all three categories through DFP, Google Ads and DV360, and AdX respectively. This vertical integration created inherent conflicts of interest, according to the Commission's findings. The decision notes that Google's conduct "abused its dominant position on both sides of the Adtech supply chain."

The Commission ordered Google to implement measures ending these self-preferencing practices within 60 days. Should Google fail to propose viable remedial measures, the Commission indicated readiness to impose appropriate structural remedies. "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," Ribera stated.

According to the Commission's 2006 guidelines on fines, the €2.95 billion penalty considered multiple factors including infringement duration, gravity, and Google's previous antitrust violations. The fine represents the largest penalty imposed on Google for advertising technology practices, though not the highest overall EU antitrust fine against the company.

The decision establishes important precedent given parallel US litigation. According to the Commission statement, a United States Federal Court recently upheld similar claims against Google in Department of Justice proceedings. The US case, scheduled for remedies arguments on September 22, 2025, closely mirrors the European Commission's findings regarding Google's advertising technology practices.

Angela Mills Wade, Executive Director of the European Publishers Council which initiated the original complaint, expressed cautious optimism about enforcement prospects. "A fine will not fix Google's abuse of its adtech," Wade stated on LinkedIn. "Strong and decisive action by Google to end illegal practices will be crucial, as Google will simply write off the fine as a cost of business."

Competition lawyer Damien Geradin, representing complainants in the case, characterized the decision as significant despite concerns about remedy implementation. "Now, the decision imposes a fine of €2,95 billion (which is more than anticipated given the news of the past few days), but there is no structural remedy," Geradin posted on LinkedIn. "This is rather disappointing as the fundamental problem remains unresolved."

The case attracted immediate political attention from US President Donald Trump, who criticized the decision on Truth Social. "Europe today 'hit' another great American company, Google, with a $3.5 Billion Dollar fine, effectively taking money that would otherwise go to American Investments and Jobs," Trump posted September 5. The president threatened potential Section 301 proceedings to nullify what he characterized as "unfair penalties being charged to these Taxpaying American Companies."

Thomas Höppner, a competition lawyer at GERADIN PARTNERS representing multiple complainants, emphasized the enforcement significance. "The European Commission has issued its fourth prohibition decision against Google for abuse of dominance," Höppner posted on LinkedIn. The lawyer noted that despite "intense U.S. intervention," the Commission proceeded with its enforcement action.

According to the Commission's background information, formal proceedings began in June 2021 following industry complaints about Google's advertising technology practices. The Commission issued a Statement of Objections in June 2023, with Google responding in December 2023 before the final decision announcement.

The advertising technology markets represent substantial revenue streams for Google's parent company Alphabet. Google's ad exchange and publisher ad server generated approximately 12 percent of Alphabet's revenue, totaling $42 billion in recent reporting periods. These figures underscore the financial significance of potential structural remedies.

Industry reactions highlighted ongoing concerns about market concentration in digital advertising. Multiple companies and organizations expressed support for stronger enforcement measures, while others questioned whether fines alone could address underlying competitive issues.

The Commission's decision reflects broader European Union efforts to regulate large technology platforms through mechanisms including the Digital Markets Act and Digital Services Act. According to the statement, these regulations complement traditional antitrust enforcement by establishing proactive obligations for designated digital gatekeepers.

Previous EU Court decisions have upheld substantial fines against Google, including the €2.4 billion penalty for search practices and related competition violations. The Court of Justice consistently supported Commission findings regarding Google's market dominance and anticompetitive conduct across multiple digital services.

Technical evidence presented during the investigation detailed specific mechanisms Google employed to advantage its services. The Commission found Google's "Dynamic Revenue Optimization" and "Sell-Side Dynamic Revenue Share" programs systematically favored AdX over competing exchanges while reducing publisher revenues from alternative platforms.

Publishers and advertisers faced higher costs resulting from Google's practices, according to Commission findings. The decision noted that "advertisers faced higher marketing costs which they likely passed on to European consumers in the form of higher prices for products and services." Publishers experienced reduced revenues that "may have led to lower service quality and higher subscription costs for consumers."

Looking ahead, the Commission's 60-day timeline for Google's remedial proposals will test the company's willingness to address structural conflicts of interest. Industry observers expect Google to propose behavioral modifications rather than asset divestiture, setting up potential additional enforcement proceedings if the Commission deems proposed measures insufficient.

The case represents a critical juncture for digital advertising competition in Europe and globally. With parallel US enforcement actions and similar investigations in jurisdictions including India, coordinated regulatory pressure may compel more substantial changes to Google's advertising technology operations than individual enforcement actions might achieve.

Timeline

• 2008: Google acquires DoubleClick for $3.1 billion, obtaining dominant publisher ad server and ad exchange
• 2011: Google acquires Admeld, yield management tool helping publishers optimize ad network decisions
• 2013-2016: Implementation of secret projects "Bernanke," "Poirot," and "Bell" for market manipulation
• June 2021: European Commission opens formal proceedings into Google's advertising technology practices
• October 2020: Department of Justice files first monopolization case against Google focused on search
• January 2023: US Justice Department files civil antitrust suit against Google for monopolizing digital advertising technologies
• June 2023: Commission issues Statement of Objections against Google
• December 2023: Google responds to Statement of Objections
• August 2024: Federal court rules Google violated antitrust laws through search dominance
• September 2024: EU Court overturns €1.5 billion fine against Google in AdSense case
• April 17, 2025: US Federal Court rules Google illegally monopolized advertising technology markets
• May 2025: Court conducts remedial hearings with government seeking breakup, Google proposing behavioral remedies
• August 2025: Former Google executive publishes book exposing internal manipulation schemes
• August 15, 2025: Court documents reveal extensive witness lists and technical exhibits for September remedies trial
• August 29, 2025: Dotdash Meredith files comprehensive antitrust lawsuit seeking damages
• September 2, 2025: Judge Mehta imposes comprehensive restrictions on Google's search monopoly
• September 2, 2025: Federal judge orders Google to share Glue data system with competitors
• September 5, 2025: European Commission announces €2.95 billion fine and orders remedial measures
• September 22, 2025: US remedies hearing scheduled in parallel Department of Justice case

Summary

Who: The European Commission imposed the fine against Google LLC, with complainants including the European Publishers Council and various advertising technology companies represented by law firms GERADIN PARTNERS and others.

What: A €2.95 billion fine for abusing dominant positions in publisher ad servers and programmatic ad buying tools, plus orders to implement measures ending conflicts of interest in advertising technology markets.

When: The Commission announced the decision on September 5, 2025, covering conduct occurring between 2014 and the present, with Google receiving 60 days to propose remedial measures.

Where: The violations occurred across European Economic Area-wide markets for advertising technology services, with enforcement jurisdiction covering all EU member states and EEA countries.

Why: Google systematically favored its own AdX exchange through advance bid information sharing and preferential treatment from its ad buying tools, creating unfair competitive advantages while harming publishers, advertisers, and consumers.