The European Commission has fined Google €2.95 billion (nearly $3.5 billion), ruling that the company violated EU antitrust laws by favoring its own advertising tools over rivals.

Regulators said Google abused its dominance by giving preferential treatment to its ad exchange AdX within both its publisher ad server and its ad-buying tools.

The Commission ordered the company to end these practices within 60 days and adopt measures addressing what it called “inherent conflicts of interest along the adtech supply chain.”

“Digital markets exist to serve people and must be grounded in trust and fairness,” said Teresa Ribera, the Commission’s executive vice president. “Google must now come forward with a serious remedy. If it fails to do so, we will not hesitate to impose strong remedies.”

Google to appeal ruling

In response, Google said it would appeal, arguing its services are competitive. “There’s nothing anticompetitive in providing services for ad buyers and sellers, and there are more alternatives to our services than ever before,” a spokesperson told The Wall Street Journal.

The announcement, reportedly delayed from September 1 due to EU–US trade deal talks, marks the bloc’s second-largest antitrust fine, trailing only the $5 billion penalty imposed on Google in 2018.

Political backlash from Washington

The decision drew criticism from U.S. President Donald Trump, who denounced the EU’s actions against American tech companies such as Google and Apple.

“We cannot let this happen to brilliant and unprecedented American Ingenuity,” Trump wrote on Truth Social, warning he could initiate a Section 301 proceeding to nullify what he called “unfair penalties.”

Later, at a televised dinner, Google CEO Sundar Pichai and co-founder Sergey Brin joined other tech leaders in praising Trump’s policies, particularly around artificial intelligence.

Google also saw developments in its U.S. antitrust battle this week. A federal judge ruled the company had acted illegally to maintain a monopoly in search but rejected Justice Department proposals that Google be forced to divest Chrome or even Android — a decision seen as a partial win for the company.