EU probes Google over search ad pricing

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TL;DR

The European Union has opened a new antitrust investigation into Google’s dominance in online advertising pricing mechanisms.

The probe focuses on whether Google unfairly disadvantages rivals through its ad tech tools and auction processes.

Article

The European Commission has launched a fresh antitrust investigation into Google’s advertising business, specifically examining how the tech giant prices and manages search ads across its platforms. The inquiry centres on Google’s control over tools that advertisers use to bid for visibility in search results—an area critics argue lacks transparency and competitiveness.

According to a statement released on February 13, the Commission will evaluate whether Google is “favouring its own advertising services” to the detriment of competitors, advertisers, and ultimately consumers. The scope includes Google Ads, its dominant search advertising product, and the broader ad stack that fuels online auctions.

“We are concerned that Google may be distorting competition in the ad tech market.” – EU Commission

The new investigation revives regulatory scrutiny at a time when Google is already facing legal action from the U.S. Department of Justice and ongoing EU cases over digital advertising and marketplace dominance. Margrethe Vestager, Executive Vice-President of the European Commission, said the probe aims to ensure a level playing field in digital advertising.

The Commission said it had preliminary concerns that Google’s practices may “reinforce its own dominance” and “make it harder for rivals to compete.” If confirmed, such practices could violate Article 102 of the Treaty on the Functioning of the European Union (TFEU), which prohibits abuse of market power.

The announcement is part of the EU’s broader agenda to regulate Big Tech more aggressively under the Digital Markets Act (DMA), which came into force this year. Google, for its part, said it would cooperate fully with the investigation.

This marks yet another chapter in the EU’s longstanding tension with Google, which has previously resulted in billions of euros in fines. The outcome of this probe could reshape the way digital ads are priced and delivered across Europe.