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European regulators have slapped Google with a €2.95 billion fine for leveraging its dominance in ad-tech to favour its own services, while President Trump has launched warnings of retaliatory trade measures-even as the €2.95 billion ad-tech sanction on Google marks the latest escalation in transatlantic friction.

The European Commission's investigation, which began in mid-2021, concluded that Google distorted competition across the 27-member bloc by prioritising its AdX ad exchange and DFP platform on third-party websites and apps-raising costs for advertisers, squeezing publishers, and potentially increasing prices for consumers. The Commission has ordered Google to end such“self-preferencing” within 60 days, warning that structural remedies-possibly including divesting parts of its ad-tech business-may follow if its proposed corrective plan fails to satisfy regulators.

Trump denounced the measure as an affront to American industry, calling it“very unfair” and claiming it diverted investments and jobs away from the United States. He threatened to launch a Section 301 investigation, a mechanism that could result in retaliatory tariffs against EU goods. This exchange has further strained efforts to stabilise U. S.–EU trade ties amid sensitive negotiations in sectors such as automobiles and pharmaceuticals.

Google has declared its intention to appeal, arguing the decision is flawed and harmful to European businesses by complicating their ability to monetise digital services. The European Publishers Council and other critics assert that a monetary penalty alone is insufficient and that only a breakup of Google's ad-tech operations could truly address the imbalance in power.

Beyond Europe, similar scrutiny of Google's ad-tech practices is unfolding internationally. The U. S. Justice Department has started remedy hearings to argue for divestment of AdX and DFP, a process that will be influenced by the Commission's findings. Meanwhile, regulators in Canada and the UK have opened their own investigations, signalling mounting global pressure on Google's ad-tech dominance.

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For Google, the fine-while substantial-represents a modest setback given its financial scale, with Q2 revenue reaching into tens of billions of dollars. Nonetheless, the consequences may run deeper: failure to propose a viable remedy could trigger forced divestiture, reshaping the ad-tech landscape and raising questions about the future structure of the sector.

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