The European Commission has fined Google €2.95 billion for breaching competition rules in the ad-tech market. Regulators accuse the company of favoring its own advertising services, giving it an unfair advantage over competitors. Google has 60 days to submit a compliance plan or face stricter measures, potentially including a breakup of parts of its ad-tech business.

Why the EU Issued the €2.95 Billion Fine

The investigation centered on Google’s dominance in the digital advertising ecosystem. Platforms like AdX and DFP gave Google control over multiple stages of buying and selling ads. According to regulators, this setup allowed Google to self-preference its own services, limiting competition and harming advertisers and publishers.

EU laws require fair treatment in digital marketplaces. By favoring its own tools, Google allegedly created barriers for rivals, reducing choice and driving up advertising costs. The European Commission stated this violates Article 102 of the Treaty on the Functioning of the EU, which prohibits abuse of market dominance.Google’s 60-Day Window and Possible Structural Changes

Compliance Deadline

Google has 60 days to propose changes that will resolve the competition concerns raised by the EU. These proposals could include opening its systems to rivals or restructuring how its platforms interact.

EU hits Google with €2.95 billion fine despite Trump threats
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Breakup Still on the Table

While the EU stopped short of forcing Google to sell parts of its ad-tech business immediately, officials clarified that structural remedies are still possible. If Google’s proposals fail, regulators could revisit options like ad-tech divestiture to restore market balance.

Global Implications

This ruling sets the tone for international regulation of Big Tech. Similar investigations into Google’s ad practices are underway in the U.S., Canada, and the U.K., meaning further actions could follow.

Google’s Appeal and U.S. Political Reactions

Google announced plans to appeal the decision, calling the ruling “wrong” and warning that compliance could negatively affect European advertisers.

In the U.S., political backlash escalated quickly. Former President Donald Trump labeled the fine “very unfair” and threatened retaliatory tariffs against the European Union. This highlights growing tensions between Washington and Brussels over digital regulation and trade policy.

The ruling also comes as the Digital Markets Act (DMA) gains traction, with regulators increasing scrutiny on Big Tech’s operations worldwide.

What’s Next for Google and the EU

Google’s compliance plan is expected to shape the future of digital advertising in Europe. If Brussels rejects its proposal, the Commission could demand a business restructuring or implement stricter regulatory controls.

With the EU taking a harder stance and other regions following suit, this case could become a global benchmark for regulating ad-tech dominance.