EU probes Google over ad practices, may slap multibillion-dollar fine
What's the story
The European Commission is conducting a probe into Google's advertising practices on its search engine. The probe centers on allegations that the tech giant is manipulating ad auction prices to the detriment of advertisers. The Brussels-based regulator believes this conduct, if proven, could violate competition rules and lead to fines up to 10% of Google's global annual sales.
Company statement
Google defends its advertising practices
In response to the EU probe, Google has defended its advertising practices. The company said, "Google Search ads help small businesses compete with the biggest brands, driving economic growth and keeping the web free for everyone." It further explained that ad prices are determined by a real-time auction system that considers advertiser competition and ad quality.
Regulatory challenges
Other legal challenges faced by Google in the EU
Under the EU's powerful Digital Markets Act (DMA), Google has been given a six-month deadline to remove technical barriers for rival AI search assistants on Android. The company is also facing potential penalties under the DMA for allegedly favoring its own services across its search empire and preventing app developers from directing consumers to offers outside of its Play Store.