The European Union (EU) has slammed tech giant Google with a fine of 2.95 billion euros ($3.5 billion), over anti-competitive practices in its adtech business.
The commission noted that Google favoured its online display technology product, which helped its advertising exchange (AdX) role in the adtech supply industry. This allowed the company to charge high fees for the services at the detriment of its competitors and other online publishers.
The EU further ordered the U.S. tech giant to end its “self-preferencing practices” and stop “conflicts of interest” along the advertising technology supply chain. It mandated that the company submit compliance plans within 60 days and provide an additional 30 days for implementation details.
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“Digital markets exist to serve people and must be grounded in trust and fairness. And when markets fail, public institutions must act to prevent dominant players from abusing their power,” the commission said.
This is the fourth time the E.U. has sanctioned Google with a multibillion-euro fine in an antitrust case, in a wider battle with regulators that dates back to 2017. These actions stem from investigations into Google’s alleged abuse of its market dominance in violation of EU competition laws.
This fine comes from Alphabet, Google’s parent company, which successfully avoided a breakup in a landmark antitrust case brought by the U.S. Department of Justice (DOJ), marking a significant moment in the ongoing scrutiny of Big Tech’s market dominance. The case, United States et al. v. Google LLC, filed in October 2020, accused Google of illegally monopolizing the search engine and search advertising markets
Google’s search engine handles nearly 90% of web searches globally, processing an estimated 8.5 billion queries daily. This dominance according to the filing, was allegedly used to stifle competition and innovation by limiting rivals’ access to key distribution channels. The DOJ argued that Google’s practices prevented competitors from gaining traction, reduced consumer choice, and harmed innovation in the search market.
Following the ruling, the DOJ proposed aggressive remedies during a remedies trial in April-May 2025, aiming to dismantle Google’s dominance and prevent similar monopolistic behavior in emerging fields like artificial intelligence (AI). The proposed remedies included forcing Google to sell its Chrome browser, which handles nearly 40% of U.S. search volume and provides valuable user data for targeted advertising.
The DOJ’s proposals were described as “radical” and aimed at fundamentally reshaping Google’s business model to foster competition. Google, led by CEO Sundar Pichai, argued that these measures were excessive, potentially harming consumers, innovation, and U.S. technological leadership. Pichai called the data-sharing proposal a “de facto divestiture” of Google’s core intellectual property.
On September 2, 2025, Judge Mehta issued a 223-page ruling that rejected the DOJ’s most severe proposals while imposing significant but less drastic remedies. Google was not required to divest Chrome or Android, a decision seen as a major win for Alphabet. Mehta argued that a breakup would cause “substantial downstream harms” to distribution partners like Apple and consumers.
At a recent White House dinner with tech executives, President Donald Trump congratulated Google CEO Sundar Pichai and co-founder Sergey Brin following Alphabet’s favorable antitrust ruling on Tuesday.
“Well you had a very good day yesterday,” Trump said, calling on Pichai at the Thursday evening dinner.
I’m glad it’s over,” Pichai responded to Trump, causing an eruption of laughter from the other table guests. “It’s a long process,” Pichai said. “Appreciate that your administration had a constructive dialogue, and we were able to get it to some resolution.”
Alphabet this week added $230 billion to its market cap after avoiding a breakup in a landmark antitrust case brought by the U.S. Department of Justice in 2020.
Trump Threatens to Retaliate EU’s $3.45bn Google antitrust fine with tariffs
The latest $3.45bn fine slammed on Google by the E.U. has spurred U.S President Donald Trump’s response.
In his reaction, President Trump termed the fine as “unfair” and “discriminatory”. He also vowed to personally take the matter up with the EU. Trump, who has hit Europe with trade tariffs, will likely retaliate with the same measures.
“We cannot let this happen to brilliant and unprecedented American Ingenuity and, if it does, I will be forced to start a Section 301 proceeding to nullify the unfair penalties being charged to these Taxpaying American Companies,” Trump wrote on his Truth Social post.
Analysts suggest Trump’s tariff threats were partly motivated by a desire to protect U.S tech giants, which he described as brilliant and unprecedented American ingenuity.
Looking Ahead
Google argues that the decision by the EU was wrong and that its services are not anticompetitive. The search engine giant has vowed to appeal the EU antitrust commission’s verdict.