The EU Commission has found Google to have breached EU competition rules by abusing its dominant position in the display advertising technology industry (‘Adtech’), imposing a fine of EUR 2.95 billion.
The Commission says Google abused its position by favouring its own online display advertising technology services to the detriment of competing providers of advertising technology services, advertisers and online publishers.
This behaviour is illegal under EU antitrust rules, said EC vice-president Teresa Ribera: “Google must now come forward with a serious remedy to address its conflicts of interest, and if it fails to do so, we will not hesitate to impose strong remedies.”
The Commission has found Google to have abused its dominant position before, in different digital markets, to the detriment of European consumers.
In this case, Google abused its dominant position on both sides of the ‘Adtech’ supply chain, says the Commission.
By controlling many of the key tools that make this industry work, Google abused its power by favouring its own online display advertising technology services to the detriment of its competitors, online advertisers and publishers.
“As a result of Google’s illegal practices, advertisers faced higher marketing costs which they likely passed on to European consumers in the form of higher prices for products and services,” said Ms Ribera.
“Google’s tactics also reduced revenues for publishers, which may have led to lower service quality and higher subscription costs for consumers,” she said.
As this is illegal under EU competition rules, the Commission has ordered Google to pay a fine of €2.95 billion.
In line with usual practice, the Commission has increased Google’s fine has it is the third Google has broken EU rules.
But in order to “deliver real and tangible solutions for the market and to protect our consumers,” Brussels has ordered Google to stop its illegal practices and to put an end to its inherent conflict of interests in the Adtech industry.
Google now has 60 days to inform the Commission on how it plans to do so, and if it fails to propose a viable plan, the Commission says it will not hesitate to impose an appropriate remedy.
The EU executive now believes that the only way for Google to end its conflict of interest effectively is with a structural remedy, such as selling some part of its Adtech business.
This, it says, appears “necessary and proportionate to effectively stop the infringement”.
Google’s illegal practices lcovered by the Commission’s decision also has a worldwide dimension.
A United States Federal Court recently upheld the main claims of a Department of Justice complaint against Google, which closely mirrored those addressed in the Commission’s decision. The United States Federal Court will also hear arguments on the appropriate remedies to be put in place by Google.
More information on this case will be available under the case number AT.40670 in the public case register on the Commission’s competition website, once confidentiality issues have been dealt with.
