Alphabet Hit With €2.95 Billion EU Fine Over Ad-Tech Dominance

European Union regulators have fined Google’s parent company, Alphabet, €2.95 billion ($3.5 billion) for violating the bloc’s competition rules by abusing its dominant position in the digital advertising technology sector. The ruling marks the fourth major antitrust penalty levied against the tech giant by the EU.

The on Friday, concluding a formal investigation that began in June 2021. The commission found that Google had unlawfully favored its own online display advertising services at the expense of rival publishers, advertisers, and ad-tech companies. As part of the decision, regulators ordered Google to cease its "self-preferencing practices" and address inherent conflicts of interest within its complex ad-technology supply chain.

According to the findings, Google's actions have hampered competition and controlled the market since at least 2014. The post-market trading signal for Alphabet (GOOGL) indicated a negative price impact of -0.88% following the news.

Google has strongly opposed the ruling, stating the decision is "wrong" and that it plans to appeal. In a statement, the company argued that the changes required by the commission would negatively impact thousands of European businesses that rely on its services to generate revenue. Lee-Anne Mulholland, Google's global head of regulatory affairs, asserted there is "nothing anticompetitive in providing services for ad buyers and sellers."

This decision represents a significant, long-running regulatory challenge for Google in Europe. While the fine is substantial, it marks a retreat from earlier threats by the Commission to potentially force a breakup of Google’s ad business, . The ruling highlights the continued scrutiny that major technology firms face from regulators on both sides of the Atlantic over their market power and competitive practices.