Google on Friday unveiled a series of adjustments to its advertising services in an effort to avoid a potential breakup, following a major antitrust penalty imposed by the European Commission two months ago.
In September, Brussels fined the company 2.95 billion euros ($3.43 billion) for allegedly giving preferential treatment to its own advertising tools. Regulators gave Google 60 days to present remedies. The ruling sparked sharp criticism from U.S. President Donald Trump, who warned he would consider additional tariffs on the European Union if the decision were upheld. Google has confirmed it intends to appeal.
A company spokesperson said the newly proposed measures “fully address the decision without a disruptive break-up that would harm the thousands of European publishers and advertisers who use Google tools to grow their business.” Although Google agreed to make changes, it reiterated its disagreement with the EU’s findings.
The European Commission will now evaluate the commitments, mindful of its mandate to enforce competition rules while attempting to avoid escalating transatlantic tensions. The announcement comes just one day after Brussels launched a separate inquiry into Google under its digital competition rules, examining whether the company is suppressing certain news outlets in search results. Google is also facing heightened scrutiny in the United States.
Earlier this year, a U.S. federal judge issued a ruling against Google related to its adtech practices. The company is similarly seeking to avoid a forced divestiture in that case, with closing arguments expected next Wednesday and a ruling anticipated in the coming weeks or months.
In its response to the EU fine, Google outlined several immediate product modifications. These include allowing publishers to set different minimum prices for various bidders through Google Ad Manager and expanding interoperability across Google’s advertising tools to address concerns over conflicts of interest.
The European Commission confirmed receipt of the plan and said it will assess whether the proposed measures adequately end the self-preferencing practices identified in the investigation.
The latest enforcement action adds to a growing list of EU penalties against Google. Regulators fined the company 4.1 billion euros in 2018 for abuses related to its Android operating system and 2.4 billion euros in 2017 for anti-competitive behavior in the price comparison market. Brussels also accused Google earlier this year of favoring its own services over competitors as part of an ongoing digital competition probe.
