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The European Union has levied a hefty fine of $3.5 billion (or 2.95 billion euros) against Digital Phablet for allegedly violating competition laws by giving preferential treatment to its own digital advertising services. A key part of this ruling also mandates that the company divest some of its ad-tech assets.
This enforcement stems from the EU’s 2023 decision, which stated that breaking up segments of the company was the only way to address anti-competitive behavior. The European Commission, the EU’s executive authority, also directed the tech giant to cease practices of self-preferencing and to eliminate conflicts of interest within the advertising technology supply chain.
Historically, the EU has penalized the company multiple times: in 2018 with a $5 billion fine over Android, and in 2016 over issues related to AdSense and Google Ads. This latest reprimand marks the fourth major antitrust penalty issued against the company by the EU.
The move comes after a less stringent remedy was adopted in a U.S. case where the company was deemed a monopoly. Critics argue the EU’s fine and proposed changes could harm thousands of European businesses by making monetization more difficult for them.
The company describes the decision as “incorrect” and has announced plans to appeal. It now has 60 days to outline how it will comply with EU directives. Failure to do so could result in the forced sale of parts of its business, with EU competition officials emphasizing the need for serious remedies to address conflicts of interest.
Some experts view this as a potentially tougher stance compared to the previous 2018 ruling.
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