The European Union’s regulatory agency decided on Friday (September 5th) to impose a fine of 29.5 billion euros (approximately 34.5 billion US dollars) on Google for anti-competitive behavior in its lucrative advertising technology business. President Trump quickly responded, calling the fine unfair and discriminatory. He hinted at taking retaliatory measures.
The European Commission, the EU’s executive body, accused Google of favoring its own online display technology services, strengthening its AdX advertising platform’s core position in the advertising technology supply chain, and allowing Google to charge high service fees, thus harming the interests of competitors and online publishers.
The EU regulatory agency stated that Google has been abusing its market dominance since 2014.
The European Commission demanded that Google cease its self-preferential behavior and take measures to eliminate its inherent conflicts of interest. The company must submit a compliance plan to the European Commission within 60 days and implement these measures within 30 days.
Teresa Ribera, Vice President of the European Commission and Head of Competition Affairs, stated on Friday in a press release: “Today’s decision demonstrates that Google has abused its dominant position in the advertising technology field, harming the interests of publishers, advertisers, and consumers. According to EU antitrust rules, such behavior is illegal.”
“Google must now propose a serious remedy to address its conflict of interest issues, and if it fails to do so, we will not hesitate to implement strong corrective measures,” the statement added.
This is the fourth time Google has been fined in a decade-long struggle with the EU competition regulatory agency. The fine was triggered by a complaint from the European Publishers Council.
Google criticized the EU’s decision and said it would appeal.
Lee-Anne Mulholland, Vice President of Global Regulatory Affairs at Google, stated: “The European Commission’s decision regarding our advertising technology services is incorrect, and we will appeal. This decision imposes unreasonable fines and requires us to make changes that will harm thousands of European businesses, making it harder for them to make money.”
The statement added, “There is no anti-competitive behavior in providing services to both sides of the advertising transaction, and our services have more alternatives than ever before.”
Previously, the EU had imposed substantial fines on Google: 24.2 billion euros in 2017, 43 billion euros in 2018, and 14.9 billion euros in 2019.
After the news of Google’s latest fine was released, US President Trump quickly responded. He posted on his social media platform “Truth Social”, stating that such actions are “unfair” and “discriminatory.”
He wrote, “We cannot allow this to happen to the brilliant and unprecedented American ingenuity, and if it happens, I will be forced to initiate a Section 301 proceeding to counter the unfair charges against these American companies.”
The Trade Act of 1974, Section 301, allows the US to retaliate against countries engaging in “unjust” or “unreasonable” practices that burden American businesses.
(Reference: Reuters)