EU Slaps Google With $3.45B Antitrust Fine Over Adtech Practices

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The European Commission has fined Google €2.95 billion ($3.45 billion) for abusing its dominance in the online advertising technology market, marking the fourth major penalty against the company in a decade-long battle with EU regulators.

The Commission found that since 2014, Google has favored its own ad exchange AdX within the adtech supply chain, charging high fees that disadvantaged rivals and online publishers. Google has been ordered to end self-preferencing and conflicts of interest, with 60 days to present a compliance plan.

EU antitrust chief Teresa Ribera warned that stronger remedies—including a potential breakup—remain on the table if Google fails to make credible changes. “Digital markets exist to serve people and must be grounded in trust and fairness,” Ribera said.

The case has stirred transatlantic tensions. U.S. President Donald Trump blasted the fine as “unfair” and threatened retaliation under Section 301 of the Trade Act of 1974, which allows tariffs on countries that impose “unjustifiable” burdens on U.S. commerce.

Google immediately vowed to appeal, calling the decision “wrong” and arguing it would harm European businesses. “There are more alternatives to our services than ever before,” said Lee-Anne Mulholland, the company’s VP of regulatory affairs.

Critics, including the European Publishers Council, said the fine alone is insufficient. “A fine will not fix Google’s abuse of its adtech,” said executive director Angela Mills Wade, urging a breakup to protect Europe’s struggling media sector.

The penalty follows Google’s previous EU fines: €4.3 billion in 2018, €2.42 billion in 2017, and €1.49 billion in 2019. Meanwhile, Google faces a separate U.S. trial in September after a judge found it holds illegal monopolies in online advertising.

Google’s ad business remains the world’s largest, generating $264.6 billion in 2024, or 76% of Alphabet’s total revenue.

Anthropic Reaches $1.5B Settlement With Authors Over AI Training

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Anthropic has agreed to pay $1.5 billion to settle a class-action lawsuit from authors who accused the company of using pirated books to train its AI chatbot Claude, according to a filing in San Francisco federal court on Friday. The settlement, which still requires judicial approval, is being described by plaintiffs as the largest copyright recovery in history and the first major resolution of its kind in the AI era.

Under the deal, Anthropic will destroy downloaded copies of more than 7 million pirated books stored in a central library and establish a $1.5 billion fund—equivalent to about $3,000 per 500,000 downloaded works, though the amount could rise if more books are identified. While the settlement ends claims over the copying of works for training, it leaves open potential future lawsuits regarding AI-generated outputs.

The lawsuit, filed last year by authors including Andrea Bartz, Charles Graeber, and Kirk Wallace Johnson, alleged that Anthropic—backed by Amazon and Alphabet—unlawfully scraped millions of books from pirate sites to build Claude’s training dataset.

Judge William Alsup previously ruled that Anthropic’s use of the works for model training qualified as fair use, but storing the pirated material in a central database violated copyright law. A trial scheduled for December could have exposed Anthropic to damages in the hundreds of billions of dollars.

Author advocates hailed the agreement. The Authors Guild’s CEO, Mary Rasenberger, called it “a vital step in acknowledging that AI companies cannot simply steal authors’ creative work to build their AI.”

The case is a watershed moment in the ongoing legal battles between AI developers and copyright holders, with other high-profile cases against OpenAI, Microsoft, and Meta still pending. Courts remain divided on whether training AI on copyrighted content constitutes fair use, ensuring the debate is far from over.

Tesla’s $1 Trillion Musk Pay Package Faces Criticism but Likely to Win Shareholder Backing

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Tesla’s board has approved a record-breaking $1 trillion compensation plan for CEO Elon Musk, designed to lock him into the company for the next decade as it pivots toward AI and robotics. Despite the staggering figure, analysts and pay experts say the plan will likely secure shareholder approval at November’s annual meeting, given Musk’s track record and Tesla’s reliance on him.

The package grants Musk 96 million restricted shares worth $31 billion upfront, vesting over two years, plus 12 additional tranches tied to ambitious earnings and market-cap milestones. If all targets are met, Musk’s stake could rise from 13% to 25%, positioning Tesla for a potential $8.5 trillion valuation—larger than Microsoft, Alphabet, and Meta combined today.

Tesla’s board defended the deal, saying Musk is “the only person on the planet” capable of unlocking the company’s potential. Negotiations reportedly involved 37 meetings with lawyers and 10 with Musk, during which Musk insisted on significant control, partial repayment for his voided $56 billion 2018 package, and assurances he wouldn’t be sidelined.

Supporters argue the plan gives Musk incentive to stay and aligns payouts with extraordinary growth. Critics call it excessive corporate governance failure, with unions and pension funds urging rejection. “This is investor money that could go into R&D or acquisitions,” said Kristin Hull of Nia Impact Capital, who signaled a possible shareholder challenge.

Large funds—Vanguard, BlackRock, and State Street—have yet to reveal their votes, though history suggests at least two may back Musk. Meanwhile, Tesla’s stock closed 3.6% higher at $350.84 Friday but remains down 13% in 2025, reflecting weak EV demand and rising competition.

The deal’s sheer scale, combining AI ambition, governance controversy, and Musk’s polarizing persona, ensures it will dominate investor debates well beyond November’s vote.