European Commission fines Google $3.5B in search engine antitrust case
UPI

European Commission fines Google $3.5B in search engine antitrust case

The European Commission on Friday fined Google $3.455 billion for violating the European Union's anti-competitive practices in advertising technology.

Logos of Google, Chrome and Android are seen on several displays in Berlin, Germany, on Wednesday. The European Commission on Friday fined Google $3.455 billion for violating the European Union's anti-competitive practices in advertising technology. Photo by Hannibal Hanschke/EPA UPI

Sept. 5 (UPI) -- The European Commission on Friday fined Google $3.455 billion for violating the European Union's anti-competitive practices in advertising technology.

Earlier this week, a U.S. federal judge ordered the U.S.-headquartered company to hand over its search results and some data to rival companies. The Justice Department challenged Google's dominance in online search. But Google avoided having to sell off its Chrome browser or Android operating system.

The DOJ also is suing Google in another advertising case with the trial set to start later this month.

The European Commission, which represents 27 nations, said it fined Google "for breaching EU antitrust rules by distorting competition in the advertising technology industry ('adtech'). It did so by favoring its own online display advertising technology services to the detriment of competing providers of advertising technology services, advertisers and online publishers," according to a news release.

Google has 60 days how it intends to "bring these self-preferencing practices to an end and to implement measures to cease its inherent conflicts of interest along the adtech supply chain."

The commission noted that advertisers and publishers rely on digital tools for the placement of real-time ads not linked to a search query, such as banner ads in websites of newspapers.

The EC began investigating Google in 2021. Investigators found that since 2014 Google "abused such dominant positions in breach of Article 102 of the Treaty on the Functioning of the European Union."

"Today's decision shows that Google abused its dominant position in adtech harming publishers, advertisers and consumers," Teresa Ribera, the European Commission's top antitrust regulator, said in a statement. "Google must now come forward with a serious remedy to address its conflicts of interest, and if it fails to do so, we will not hesitate to impose strong remedies.

"Digital markets exist to serve people and must be grounded in trust and fairness. And when markets fail, public institutions must act to prevent dominant players from abusing their power. True freedom means a level playing field, where everyone competes on equal terms and citizens have a genuine right to choose.

Google plans to appeal.

"There's nothing anticompetitive in providing services for ad buyers and sellers, and there are more alternatives to our services than ever before," Lee-Anne Mulholland, Google's global head of regulatory affairs, said in a statement to The New York Times.

A variety of businesses, small and large, advertise on Google's search engine. Google's automated system finds and indexes webpages. In 2024, Google began providing artificial intelligence summaries through AI Mode.

Google has an 89.93% woldwide market share of search engines with Microsoft Bing second at 3.95%, Russia's Yandex third at 2.21% and Apollo Global Management's Yahoo fourth at 1.48%, according to StatCounter.

Google processes approximately 16.4 billion searches per day.

In 2023, Google had $264.59 billion in ad revenue, mainly from search, according to Statista. The company's total revenue was 305.63 billion.

Google was founded in 1998 by Larry Page and Sergey Brin, who developed a search algorithm called "BackRub" at Stanford University. In 2021, the ad revenue was 70 million.

The name Google is a misspelling of Googol, the number 1 followed by 100 zeros.

Google's parent company is Alphabet, which was formed in 2015 through restructuring. It is the world's third-largest tech company in terms of revenue behind Amazon and Apple. Alphabet's total revenue was $350 billion in 2024 with the market capitalization now $2.83 trillion.

In mid-day trading on Nasdaq, Alphabet's stock was up $1.59 to $233.89.

Besides Chrome, Android and its search engine, other Google businesses include Google Cloud, Google Maps and Waze, Google Pixel, Next and YouTube.

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