Alphabet’s (GOOGL) Google has been hit with a €2.95 billion ($3.45 billion) antitrust fine from the European Union for engaging in anti-competitive practices within its profitable advertising technology business. This marks the fourth antitrust penalty levied against the tech giant by EU regulators in the past decade.
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The fine, which was prompted by a complaint from the European Publishers Council, could raise tensions between two major global powers. U.S. President Donald Trump had previously threatened retaliation against the EU for its scrutiny of American tech firms.
What Triggered the Fine?
The European Commission’s investigation, which began in 2021, found that Google unfairly favored its own adtech services, particularly its ad exchange platform AdX. This self-preferencing allegedly allowed Google to charge higher fees and stifle competition from rival adtech providers and publishers.
As a result, Google has been ordered to stop these “self-preferencing practices” and “implement measures to cease its inherent conflicts of interest along the adtech supply chain.”
The company has 60 days to propose a solution to the Commission.
Breakup Still on the Table
While the fine itself is a major blow, regulators have warned that they may pursue strongermeasures, such as potential divestitures of its ad-tech business, if Google’s proposed remedies are deemed insufficient.
“This behavior is illegal under EU antitrust rules,” stated EU competition chief Teresa Ribera. She added that if Google fails to propose a “serious remedy,” the Commission “will not hesitate to impose strong remedies.”
Google Calls the Ruling “Wrong”
In response, Google stated the decision was “wrong” and that it plans to 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, Google’s global head of regulatory affairs.
What Is the Target Price for Google Stock?
On TipRanks, GOOGL stock has received a Strong Buy consensus rating, with 29 Buys and nine Holds assigned in the last three months. The average Alphabet stock price target is $231.94, suggesting a downside risk of 0.81% from the current level.
