EU Opens Antitrust Probe into Google Search Ad Auction Practices
On Feb. 12 the European Commission opened a formal antitrust investigation into Google’s search advertising auction practices under Article 102. The probe will assess whether Google unfairly prioritized its own ad products in auction rankings, potentially exposing the company to fines up to 10% of global turnover.
1. EU Launches Formal Investigation
European regulators officially notified Google on Feb. 12 that they have opened a competition inquiry into its search advertising auction system under Article 102 of the EU Treaty. The Commission will analyze bid processes, ranking algorithms and whether Google’s own ad offerings receive preferential treatment over rivals.
2. Potential Penalties and Business Implications
If found guilty of abusing dominance, Google could face fines up to 10% of its €280 billion global revenue, creating earnings volatility. The investigation adds regulatory uncertainty that may affect ad sales growth and investor sentiment while Google prepares its defense.