In an attempt to avoid a forced breakup, Google has proposed significant changes to its advertising services following a hefty antitrust fine levied by the European Union.
The company was hit with a record 2.95-billion-euro ($3.43 billion) penalty in September for allegedly abusing its dominant position to favor its own services in the online advertising sector.
The European Commission gave Google 60 days to remedy the situation, setting the stage for the company to make these adjustments or face more drastic measures. Google, while agreeing to the proposed changes, has made it clear it still disagrees with the EU’s findings and intends to appeal the fine.
In a statement issued Friday, a Google spokesperson asserted that the company’s new proposal fully addresses the EU’s concerns “without a disruptive break-up” that could harm the thousands of European publishers and advertisers that rely on its services to grow their businesses.
Despite the proposed changes, the ongoing legal battle underscores the heightened scrutiny of Google’s business practices.
The European Commission will now assess the commitments made by the tech giant to ensure they effectively address the self-preferencing practices that have been at the heart of the case.
The EU is caught between a desire to enforce strict competition rules and the need to manage diplomatic relations, particularly with the U.S., where President Donald Trump has threatened retaliatory tariffs on European goods in response to the fine.
The European Commission’s investigation into Google’s advertising practices focused on its dual role in the adtech ecosystem.
Google not only sells advertising on its own platforms—such as search and YouTube—but also acts as an intermediary for third-party advertisers wishing to place ads on websites and apps across the internet.
The Commission argued that this gave Google an unfair advantage, making it harder for competitors to challenge its dominance.
To address these concerns, Google has proposed several immediate changes to its advertising tools. Notably, the company will give publishers more flexibility to set varying minimum prices for different bidders when using Google Ad Manager, allowing for greater competition and transparency.
In an effort to address the EU’s accusations of a conflict of interest, Google also plans to enhance the interoperability of its ad tools, making it easier for publishers and advertisers to use non-Google services alongside its own.
The European Commission confirmed that it has received Google’s proposed measures and will now analyze them to determine if they effectively resolve the self-preferencing issue.
A Commission spokesperson emphasized that the goal is to ensure that Google’s dominance in the market does not stifle competition or harm consumers.
This latest fine follows a series of other antitrust penalties that have been imposed on Google by the European Union.
In 2018, the company was hit with a 4.1 billion-euro fine for abusing the market dominance of its Android operating system. In 2017, Google was fined 2.4 billion euros for anti-competitive practices in the price comparison market.
Additionally, the EU launched another digital competition investigation into Google earlier this year, raising concerns that the company may be unfairly pushing down the visibility of certain news outlets in its search rankings.
This move signals the EU’s continued scrutiny of Google’s vast market influence, particularly in the digital advertising space.
Google is also facing legal challenges in the United States, where a federal judge earlier this year ruled against the company over similar antitrust concerns related to its advertising services. Closing arguments in the case are set to take place next week, with a decision expected in the coming months.
This ongoing battle over Google’s market dominance reflects the growing global effort to rein in the power of major tech companies.
As the EU and the U.S. continue to challenge Google’s advertising practices, the tech giant’s ability to resolve these disputes without facing structural changes could have far-reaching implications for the future of digital
competition.
