European Commission again targets Google's advertising technology businessIssue high finesThe court in question, in a case totaling €29.5 billion (approximately $35 billion), found that Google distorted fair competition in its digital advertising technology through "internal favoritism" between its own tools. This ruling not only echoes a previous US court finding that Google's advertising technology constituted a monopoly, but also once again highlights the influence and controversy surrounding tech giants in the digital advertising ecosystem.
The EU investigation revealed that Google, in addition to search advertising, also leveraged ad-buying tools (such as Google Ads and DV 360), its ad exchange platform AdX, and its DFP advertising server to gain market control. The European Commission determined that Google likely exploited its information advantage by informing its own exchange platform AdX of the best bids offered by competitors, thereby achieving a "narrow victory."
In addition, Google Ads has also been found to tend to bypass other trading platforms and mainly direct bids to AdX, further strengthening the dominance of its own platform. Even if there are better options on the market, they will still direct bids to its own services.
The EU has mandated that Google must propose concrete improvements within 60 days, or face "appropriate remedial measures." Beyond fines, the EU has also suggested requiring Google to sell some or all of its advertising technology business, essentially forcing a structural breakup that would significantly impact Google's advertising ecosystem.
Lee-Anne Mulholland, Google's head of global regulatory affairs, stressed in a statement that the EU's ruling was wrong and that the company would appeal. She noted that the advertising market has more options than ever before, and that Google's services are not exclusive and have helped thousands of European companies profit.
Lee-Anne Mulholland criticized the EU ruling as not only unfair but also likely to undermine the operational resilience of European SMEs in the digital market.
This isn't the first time Google has been hit with a hefty fine in the EU. Back in 2018, the EU fined Google $50.4 billion for forcing telecom operators to pre-install its apps. Over the past decade, the EU has launched numerous antitrust investigations against Google, but these have typically focused on monetary penalties, rarely requiring substantive structural changes. However, with the escalating controversy surrounding advertising technology, the EU is seen as more likely to pursue "dismantling sanctions" than the US.
In the United States, although the court found that Google had a monopoly in the search market in 2024, the judge ultimatelyGoogle isn't being asked to sell Chrome, or demanding that Google stop paying Apple to make its search engine service the default option on iPhones. In contrast, the EU has taken a tougher approach to regulating tech giants, and has recently launched investigations into other Google practices in the advertising market, indicating that regulatory pressure will continue to increase.
For Google, advertising remains its core revenue source, accounting for over 80%. If the EU ultimately mandates the separation of its ad technology business, it would not only impact the company's operating model but also potentially alter the competitive landscape of the global digital advertising industry. This would potentially create more room for competitors and alter the way advertisers and publishers collaborate.
