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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.

Prosus Secures EU Antitrust Approval for Just Eat Takeaway Bid

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Dutch tech investor Prosus has received conditional approval from the European Union for its €4.1 billion ($4.76 billion) acquisition of Just Eat Takeaway, after agreeing to reduce its significant stake in rival Delivery Hero.

The European Commission confirmed that Naspers, Prosus’ majority owner, will lower its 27.4% holding in Delivery Hero to below a minimal threshold within 12 months. Naspers also committed not to exercise voting rights, increase its stake, or influence the management and supervisory boards of Delivery Hero.

Prosus announced the takeover plan in February, aiming to leverage its artificial intelligence expertise to strengthen Just Eat Takeaway, Europe’s largest meal delivery platform. With the EU clearance, this marks the final regulatory approval required for the deal, which is set to close by October 1, provided all offer conditions are met.

Prosus CEO Fabricio Bloisi described the acquisition as a step toward building a “true European tech champion” in the food delivery sector. EU antitrust chief Teresa Ribera emphasized that the ruling safeguards competition and consumer choice, warning that the Commission will continue to take a hard line against anti-competitive practices.

The approval comes months after Delivery Hero and its subsidiary Glovo were fined €329 million for cartel activities, including market division and non-poaching agreements. Once completed, the deal will make Prosus the fourth-largest global food delivery company, behind Meituan, DoorDash, and Uber, according to ING analysts.

Amazon Likely to Face EU Investigation Under Digital Markets Act in 2024

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Key Developments

Potential Investigation

  • Amazon is expected to undergo a formal investigation by the European Union in 2024 over allegations of favoring its own brand products on its online marketplace.
  • The probe will evaluate whether Amazon violated the EU’s Digital Markets Act (DMA), landmark legislation aimed at curbing the power of Big Tech.

Possible Penalties

  • If found guilty, Amazon could face a fine of up to 10% of its global annual turnover.
  • Amazon shares dipped 3% to $196.91 following the news.

Leadership Transition

  • The decision on launching the investigation will fall to Teresa Ribera, the incoming EU antitrust chief, who is set to replace Margrethe Vestager next month.

Amazon’s Position and Compliance Claims

  • Amazon asserts it is fully compliant with the DMA and has cooperated with the European Commission since two of its services were designated as “gateways” under the DMA rules.
  • In its March compliance report, Amazon stated its ranking algorithms do not favor Amazon-branded products or distinguish between Amazon Retail and third-party sellers.

Broader Context of the Digital Markets Act

Scope of the DMA

  • Introduced in 2022, the DMA imposes stringent obligations on seven major tech companies, including Amazon, Apple, Google, and Meta.
  • Key provisions include prohibitions against self-preferencing and mandates for fair treatment of third-party businesses on dominant platforms.

Ongoing Investigations

  • Other Big Tech firms, such as Apple, Alphabet (Google), and Meta Platforms, are already under scrutiny for potential breaches of the DMA.
  • Ribera is expected to decide the outcomes of these cases in her tenure.

Implications for Amazon and the Tech Industry

Market Impact

  • A potential fine and increased scrutiny could have long-term implications for Amazon’s operations and financial performance.
  • The case highlights the growing regulatory pressure on dominant digital platforms in the EU.

Consumer and Business Dynamics

  • The investigation could reshape how Amazon prioritizes products on its platform, potentially benefiting third-party sellers and consumers by ensuring fair competition.