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European Commission to Impose ‘Modest' Penalties in Google AdTech Case
PYMNTS.com· 2025-08-29 23:45
Core Viewpoint - The European Commission is expected to impose a "modest" fine on Google in an antitrust case related to its AdTech business, without requiring the company to divest any part of its operations [1][2]. Summary by Relevant Sections Antitrust Case Details - The European Commission has accused Google of abusing its dominance in the online AdTech industry since 2014, alleging favoritism towards its own ad exchange, AdX, in auction matching [4]. - The fine is anticipated to be less than the 4.3 billion euros imposed in a previous case in 2018 [2]. Regulatory Approach - The new EU antitrust chief, Teresa Ribera, is reportedly focusing on encouraging companies to cease anti-competitive practices rather than imposing large fines [3]. Google's Position - Google contends that serving both advertisers and publishers is standard practice in the industry, and that competitors also operate similar AdTech businesses [5]. - In 2024, advertising revenue constituted 75.6% of Google's total revenue [5]. U.S. Legal Challenges - Google is also facing legal challenges in the United States, where a federal judge has ruled that the company unlawfully maintained monopolies in key areas of the online ad industry [6]. - The U.S. Justice Department has called for Google to divest significant components of its digital advertising business, including the AdX marketplace and DFP ad-serving platform, to restore competition [7].