Google Fined $3.45 Billion In A Historic EU Ruling, Following Other Penalties

Just last week, Google was fined in two different countries and continents—the United States and France.

In both cases, the company was penalized for invading users’ privacy.

In the U.S., the tech giant was found to have continued collecting, saving, and using data from millions of users who had turned off a tracking feature in their Google account for over eight years. Here, Google was fined $425 million.

In France, the Commission Nationale de l'Informatique et des Libertés (CNIL)—the country’s data protection authority—fined Google €325 million ($381 million) for using cookies and displaying ads improperly to Gmail users, without their consent. The company was given six months to ensure users didn’t face such issues going forward, failing which, it would be subject to a penalty of €100,000 ($116,375) per day.

All this came following a ruling that was in their favor—U.S. District Judge Amit Mehta (Washington) declared that Google would not have to sell off its Chrome browser or Android operating system, among other beneficial decisions. However, this victory came with one drawback for the company—it would have to share its search data with its rivals. Still, better than having to sell two of its prized products, right?

In the latest fine frenzy, Google has been instructed by the European Union (EU) to pay a fine of €2.95 billion ($3.45 billion) for “distorting competition in the advertising technology industry.”

According to the EU, Google has favored its own online display technology services and has also abused its market power since 2014.

The company operates several AdTech services that connect advertisers and publishers to display ads on websites or mobile apps. This includes two ad buying tools—Google Ads and DV 360—as well as a publisher ad server—DoubleClick For Publishers or DFP—and an ad exchange—AdX.

The company has been provided with 60 days to tell the EU how it plans to stop these unfair practices, and another 30 days to implement them.

“Today’s decision shows that Google abused its dominant position in AdTech harming publishers, advertisers, and consumers,” said Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition. “This behavior is illegal under EU antitrust rules.”


Of course, Google plans to appeal the decision while criticizing it.

“The European Commission's decision about our ad tech services is wrong and we will appeal. It imposes an unjustified fine and requires changes that will hurt thousands of European businesses by making it harder for them to make money," said Lee-Anne Mulholland, VP, Global Head of Regulatory Affairs.

“There's nothing anticompetitive in providing services for ad buyers and sellers, and there are more alternatives to our services than ever before.”

Even U.S. President Donald Trump chipped in, describing the ruling as “unfair” and “discriminatory,” and said he plans to take up the matter with the EU directly.

"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," said Trump.

Section 301 allows the country to penalize other nations that make unjust moves against the U.S. economy.

However, while Google plans to appeal the move, the EU might have other cards up its sleeve. The regulator said it could force the company to divest its products if it fails to remedy the anticompetitive practices it’s charged with. The EU even planned to hand out orders of divestitures, but decided to wait to see Google’s compliance efforts.

“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,” said Ribera.

“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. True freedom means a level playing field, where everyone competes on equal terms and citizens have a genuine right to choose.” 

Do you think Google will be able successfully appeal the decision with the backing of U.S. President Donald Trump?

Do you think the EU is right in its assessment of Google’s anticompetitive practices?

Let us know in the comments below!