• Google has been fined €3 billion by the EU for anti-competitive practices in its ad tech business and must propose remedies within 60 days.
  • The company will not be forced into an immediate structural breakup, but the EU has signaled this remains an option if its proposals are inadequate.
  • The penalty intensifies transatlantic trade tensions, with the US government having previously warned the EU against targeting American tech firms.

Google is preparing a formal proposal for European Union regulators after being hit with a nearly €3 billion fine for abusing its dominant position in the online advertising market. According to people familiar with the matter, the company’s initial remedy package will stop short of offering a full breakup of its ad tech business, a scenario some competitors had pushed for.

The European Commission found that Google had systematically favored its own ad tech services, such as AdX and DoubleClick, over those of rivals, distorting competition. The company is now required to submit a detailed plan within 60 days to address these concerns. “Without a satisfactory deal, the company would face the prospect of more drastic, structural intervention,” said one person briefed on the discussions.

Efforts to restructure its sprawling advertising operations have hit a snag, however, as company lawyers and the EU competition authority debate the scope of acceptable changes. Google has argued that some proposed remedies could hurt the European publishers and advertisers that rely on its platforms for revenue. A spokesperson for Alphabet, Google’s parent company, declined to comment on the specifics of the ongoing negotiations.

The fine is the latest in a series of multi-billion euro penalties levied against the tech giant by Brussels, underscoring a hardening regulatory stance. It also comes during a delicate period in EU-US trade relations. The US government had previously warned its European counterparts against what it views as unfairly targeting American companies, and this decision risks further inflaming tensions.

In a statement, the European Publishers Council welcomed the fine but cautioned that “the size of the fine is less important than the remedies.” The industry group and other complainants have long argued that only significant structural changes can truly level the playing field in the digital ad market.

For now, a forced divestiture appears to be off the table, but the threat remains. EU officials have signaled that if Google’s proposed behavioral changes are deemed insufficient, a mandate to sell parts of its business could follow. The outcome of this process is being closely watched as a bellwether for how other major platforms might be treated under the EU’s expanding digital rulebook.