EU Accuses Google of Giving Its Own Ads Unfair Boost
The European Union has imposed a fine of €2.95bn (£2.5bn) on Google for employing its dominance in internet advertising to favor itself at the expense of other firms. The European Commission announced on Friday that Google infringed competition rules by promoting its own ad technology, rather than leaving a level playing field for everyone.
The Commission stated that Google’s ad exchange, AdX, had been prioritized ahead of competing services in which advertisements are sold and purchased in real-time. That, the EU has said, made it more expensive for competitors and resulted in publishers making less money. Those increased costs could subsequently have been passed on to normal consumers via more expensive online services. The fine is one of the biggest penalties the EU has ever imposed on a tech firm.
Google Asserts That The Ruling Is Incorrect
Google moved swiftly to counter the EU’s ruling. Google informed the BBC that it would appeal and that the fine is “wrong.” Lee-Anne Mulholland, who is Google’s global head of regulatory affairs, countered that the ruling would do damage to smaller European businesses that use Google advertisements to generate revenue.
“There’s nothing unlevel about providing services to ad buyers and sellers,” Mulholland stated. She added that it was already a lot of alternatives to Google’s platforms.
Google has faced such challenges before. In 2018, it was fined €4.34bn for using its Android system to keep itself in control of the mobile market. Because this is now the third time the company has been found guilty of breaking EU rules, regulators said they had no choice but to raise the penalty.
Political Tensions Rise After the Decision
The decision has also elicited political responses. U.S. President Donald Trump labeled the EU’s action as “very unfair” and threatened that his government might probe into how Europe is treating American tech giants. He even threatened to impose tariffs if the EU did not “immediately stop these discriminatory practices.
At the same time, the European Commission dismissed allegations that the fine was being held back by lingering U.S.-Europe trade tensions. EU regulators indicated that their ruling had only to do with evidence, and not politics.
The Commission has now granted Google 60 days to demonstrate how it will modify its business. Otherwise, the EU could insist on more drastic action, such as requiring Google to divest part of its advertising business.
FAQs
1. Why was Google fined by the EU?
Because it privileged its own advertising platform at the expense of others, in contravention of competition laws.
2. How much is the fine?
€2.95bn (£2.5bn), one of the biggest fines the EU has ever issued to a tech firm.
3. What does Google say about this?
Google claims the ruling is incorrect, will appeal, and maintains it could damage small businesses.
4. Has Google been fined previously?
Yes, in 2018 it was fined €4.34bn for employing Android in order to maintain its dominance.
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