The European Union has launched a fresh antitrust investigation into Google, targeting the tech giant's search advertising practices and alleged manipulation of news results. This marks another significant regulatory challenge for Alphabet Inc.'s flagship subsidiary, which already faces billions in existing EU fines.
Investigation Focuses on Search Ad Pricing Mechanisms
According to documents obtained by Bloomberg News, the European Commission suspects Google has been "artificially increasing the clearing price" of advertising auctions on its search platform. This practice allegedly disadvantages advertisers by inflating costs beyond what would occur in a genuinely competitive market.
The Brussels-based regulator detailed its concerns in a February 9 letter to potentially affected businesses, stating that if evidence supports these suspicions, Google could be found in violation of EU competition rules. Such violations carry substantial penalties, including fines reaching up to 10 percent of a company's global annual revenue.
Multiple Regulatory Fronts Opening Against Google
This latest probe adds to Google's mounting regulatory challenges in Europe, where the company has already accumulated €9.5 billion (approximately US$11.3 billion) in antitrust fines. The investigation represents one of several fresh regulatory actions initiated by Brussels authorities in recent weeks targeting the Mountain View, California-based technology firm.
In an accompanying request for information, EU watchdogs have asked market participants about Google's dominance across multiple online advertising markets. While the investigation remains in preliminary stages, sources familiar with the case indicate it could soon be formally announced by Competition Commissioner Teresa Ribera.
Google Responds to Allegations
Google defended its advertising practices in an emailed statement, emphasizing that "Google Search ads help small businesses compete with the biggest brands, driving economic growth and keeping the web free for everyone." The company explained that "ad prices are determined by a real-time auction designed to show people the most relevant ads, taking into account factors like advertiser competition and ad quality."
The European Commission declined to comment on the ongoing investigation when approached for statements regarding the probe.
Parallel U.S. Antitrust Actions
Similar allegations have previously been raised against Google by the United States Department of Justice, which attempted to force a sale of Google's Chrome browser. That particular move has been temporarily blocked by a Washington judge, though broader antitrust concerns persist in American regulatory circles.
Additional Regulatory Pressures Under DMA
Beyond the search advertising investigation, Google faces additional regulatory pressures under the European Union's powerful Digital Markets Act. The company recently received a six-month deadline to remove technical barriers preventing rival AI search assistants from operating on Android devices and to provide essential data to competing search engine providers.
Separately, Google confronts potential penalties under the DMA for allegedly favoring its own services across its extensive search ecosystem and for restricting app developers from directing consumers to offers outside the Google Play Store.
News Ranking Practices Under Scrutiny
The European Commission's investigation extends beyond advertising practices to include concerns about how Google ranks news content in search results. Regulators are examining allegations that the company unfairly demotes certain news sources, potentially distorting competition in digital news markets.
This multifaceted regulatory scrutiny comes as Google navigates increasingly complex relationships with both European authorities and the Trump administration, with the latest probe potentially further straining these already tense diplomatic and regulatory relationships.
