On Thursday, the European Commission fined Google €2.95 billion – equivalent to $3.5 billion – for allegedly abusing its dominance in the adtech market. Regulators say Google gave its own display advertising services an unfair advantage over rivals, advertisers, and publishers. The ruling requires Google “to bring these self-preferencing practices to an end” and to address conflicts of interest across its offerings. The Commission has given Google 60 days to outline its compliance plan.
According to Politico, the Commission had originally planned to deliver the fine on Monday, but Brussels’ trade czar Maroš Šefčovič jumped in to delay the decision amid ongoing tariff threats from President Trump. Speaking of, yesterday, Trump threatened the entire EU with retaliatory tariffs if they don’t drop the fine.
The decision comes just days after a U.S. court ruled in the DOJ’s search antitrust case against Google, rejecting the tougher penalties the agency wanted. ANd, of course, the DOJ’s other antitrust adtech case against Google is expecting a final ruling on remedies soon, which could actually involve Google spinning out/divesting AdX.
Why This Matters:
The European Commission has hinted that divestment may ultimately be the only way to resolve Google’s conflicts of interest, but it first wants to review Google’s compliance plan. Meanwhile, the U.S. DOJ is expected to issue remedies in its separate adtech case sooner — potentially including a spin-off of AdX. If the U.S. moves first, it could set the tone and put additional pressure on the Commission as it considers whether Google’s proposals go far enough.
Additionally, with Trump continuing to saber rattle on tariffs and other geopolitical issues, Europe may feel added incentive to show toughness toward U.S. tech companies, with Google suffering, as a result. There is not really any clarity on what to expect here.
Experts React:
Here are some of the best posts on X about the situation:
Our Take:
The fine is obviously massive (though not the biggest Google has seen out of the EU), but the bigger story now is the geopolitics surrounding it. Remember, this case against Google was initiated by the first Trump administration, at a time when being anti–Big Tech was a popular stance for conservatives. Today, however, Trump “2.0” is showing a more Big Tech-friendly attitude, and we’re seeing that play out, weirdly, in the adtech market. This ultimately puts Europe in a tough position: should it double down to show it won’t be bullied, or pull back at the risk of losing credibility on tech enforcement? (Which they seem to love.)
