The European Commission has fined Alphabet’s Google (GOOG) €2.95 billion, or about $3.2 billion, for what it calls abuse in its online advertising business. The case centers on what regulators describe as “self-preferencing,” where Google gave its own ad services an edge over rivals. Google now has 60 days to explain how it will comply, or face the possibility of more decisive action, which could include a forced sale of parts of its ad unit.
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European competition chief Teresa Ribera said the remedy must be “both necessary and proportionate” to stop the conduct. She noted that “at this stage, it appears 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 follows a €4.12 billion fine issued in 2018 over Google’s Android mobile system.
Google pushed back on the ruling. The firm said it would appeal and called the penalty “unjustified.” Lee-Anne Mulholland, the company’s global head of regulatory affairs, added that “it requires changes that will hurt thousands of European businesses by making it harder for them to make money.”
Trump Threatens Tariffs in Reply
Shortly after the decision, U.S. President Donald Trump posted on Truth Social, criticizing the fine as “very unfair.” He argued that Europe’s approach “cannot let this happen to brilliant and unprecedented American ingenuity.” He also warned that his team may open a trade probe that could lead to new tariffs on European goods.
The timing comes as Brussels and Washington continue to work on a trade deal agreed in late July. The EU’s trade chief Maroš Šefčovič delayed the announcement earlier this week, according to people familiar with the process, due to concern over the talks. He later said he “fully supports” the Google case under Ribera.
As a reminder, Google also faced a ruling in the U.S. last year that found it held an illegal monopoly. Regulators had asked a court to consider breaking up the Chrome browser or Android system. However, earlier this week, a federal judge rejected that idea, ordering instead that Google share more data and avoid exclusive contracts.
Therefore, both Europe and the U.S. continue to raise pressure on Google’s ad practices. Yet the size of the fine and the trade threats linked to it underline how regulatory moves and trade policy can intersect in ways that affect both markets and investors.
Is Google Stock a Good Buy Right Now?
On the Street, Google boasts a Strong Buy consensus rating, with an average GOOG stock price target of $235.42. This implies a 0.11% upside from the current price.
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