The European Commission has imposed a $3.45 billion fine on Google after concluding that the company engaged in anticompetitive practices in the digital advertising sector. The ruling follows a lengthy investigation into Google’s advertising technology, commonly referred to as adtech, which plays a crucial role in connecting publishers and advertisers.

Allegations of Market Abuse in AdTech

Regulators argued that Google abused its dominant position by favoring its own advertising services over competitors. Specifically, the Commission found that Google unfairly linked its publisher ad server with its advertising exchange, making it harder for rival platforms to compete effectively. This, according to the EU, created a closed ecosystem that limited choice and innovation.

One of the Heaviest Fines Against Google

The $3.45 billion penalty ranks among the largest antitrust fines ever imposed by the EU, adding to the more than $10 billion in fines Google has already faced in Europe over the past decade. Previous cases involved its shopping services, Android mobile practices, and restrictions on search advertising.

Impact on Digital Advertising and Competition

The ruling could have wide-ranging implications for the $600 billion global digital advertising industry, where Google remains a dominant player alongside Meta. By forcing Google to loosen its grip, the EU aims to create a more competitive environment where publishers and advertisers can use alternative platforms without restrictions.

Google’s Response and Next Steps

In response, Google expressed disagreement with the decision, stating that its tools benefit advertisers and publishers by increasing efficiency. The company is expected to appeal the ruling, which could set up another lengthy legal battle in European courts. Meanwhile, the EU’s decision sends a strong signal that digital gatekeepers will face stricter oversight under upcoming regulations like the Digital Markets Act (DMA).