• Search Engine Land
  • Sections
    • SEO
    • SEM
    • Local
    • Retail
    • Google
    • Bing
    • Social
    • Resources
    • More
    • Home
  • Follow Us
    • Follow
  • Search Engine Land
  • SEO
  • SEM
  • Local
  • Retail
  • Google
  • Bing
  • Social
  • Resources
  • Live
  • More
  • Events
    • Follow
  • SUBSCRIBE

Search Engine Land

Search Engine Land
  • SEO
  • SEM
  • Local
  • Retail
  • Google
  • Bing
  • Social
  • Resources
  • More
  • Newsletters
  • Home
SEM

Google fined another $1.7 billion by EU for ‘abusive’ AdSense publisher contracts

Google has now been fined a cumulative total of roughly $9.3 billion and there's one more potential case lurking.

Greg Sterling on March 20, 2019 at 9:58 am
  • More

Google faces its third significant antitrust fine in the EU. This time the company was penalized 1.49 billion euros ($1.69 billion) for “abusive practices in online advertising” involving publisher contracts surrounding AdSense for search.

The fine “takes account of the duration and gravity of the infringement. . . . [and] has been calculated on the basis of the value of Google’s revenue from online search advertising intermediation in the EEA,” according to the European Commission (EC) statement.

More than $9 billion in fines. Last year Google was fined a record 4.3 billion euros (roughly $5 billion) antitrust fine resulting from Google Play app pre-install contracts with phone makers. And in 2017, Google was fined 2.4 billion euros ($2.7 billion) for favoring its own content in shopping search results.

All three formal antitrust complaints have resulted in heavy fines, a total of 8.2 billion euros ($9.3 billion). Google has appealed both the previous fines and will likely appeal this one.

The “abusive contracts.” The EC said that exclusivity provisions in Google AdWords agreements (“AdSense for Search“) with third-party publishers prohibited them from using competing services and restricted the way publishers were able to display ads from Google’s rivals.

Antitrust commissioner Margrethe Vestager issued the following statement in conjunction with the decision:

“Today the Commission has fined Google €1.49 billion for illegal misuse of its dominant position in the market for the brokering of online search adverts. Google has cemented its dominance in online search adverts and shielded itself from competitive pressure by imposing anti-competitive contractual restrictions on third-party websites. This is illegal under EU antitrust rules. The misconduct lasted over 10 years and denied other companies the possibility to compete on the merits and to innovate – and consumers the benefits of competition.”

The EC said that Google’s agreements made it difficult for Microsoft or Yahoo to compete for publishers’ business.

Here come the private lawsuits. Google changed the agreements in 2016 when the formal antitrust complaint was issued. So the disputed conduct has ended. However the EC says that Google may now face civil actions for damages “by any person or business affected by its anti-competitive behaviour.”

Expect a range of lawsuits from publishers and others to take place. Google also faces a potential fourth antitrust case over local search that has not formally been declared.

Why you should care. The EC’s Margrethe Vestager’s term as Europe’s antitrust lead is up this year and she will not likely be reappointed. However, before she goes I would expect a fourth Statement of Objections (formal charges) to be filed against Google in local search that will probably turn into in another big fine. The logic is virtually identical to that in the shopping search case that resulted in a $2.7 billion penalty.

Together, these fines and outcomes put increasing pressure on U.S. officials to take some new action against Google despite the closure of the 2013 FTC antitrust case without significant penalties.


Opinions expressed in this article are those of the guest author and not necessarily Search Engine Land. Staff authors are listed here.



About The Author

Greg Sterling
Greg Sterling is a Contributing Editor to Search Engine Land, a member of the programming team for SMX events and the VP, Market Insights at Uberall.

Related Topics

Channel: SEMGoogleGoogle AdsGoogle: AdSenseGoogle: CriticsLegalLegal: Regulation

We're listening.

Have something to say about this article? Share it with us on Facebook, Twitter or our LinkedIn Group.

Get the daily newsletter search marketers rely on.
See terms.

ATTEND OUR EVENTS

Lorem ipsum doler this is promo text about SMX events.

April 13, 2021: SMX Create

May 18-19, 2021: SMX London

June 8-9, 2021: SMX Paris

June 15-16, 2021: SMX Advanced

August 17, 2021: SMX Convert

November 9-10, 2021: SMX Next

October 2021: SMX Advanced Europe

December 14, 2021: SMX Code

Available On-Demand: SMX

Available On-Demand: SMX Report

×


Learn More About Our SMX Events

Discover actionable tactics that can help you overcome crucial marketing challenges. Our next conference will be held:

MarTech 2021: March 16-17

MarTech 2021: Sept. 14-15

MarTech 2020: Watch On-Demand

×

Attend MarTech - Click Here


Learn More About Our MarTech Events

White Papers

  • The 7 Phases of a Website Redesign
  • Rearchitecting Revenue: Accelerating Demand Through Data
  • Save Your Marketing by Fixing Bad Data, First
  • Precision Demand Generation: Create Meaningful Connections With Your Buyer
  • The Media-First Approach Why visual media must be a primary consideration for e-commerce businesses
See More Whitepapers

Webinars

  • The AI Revolution Is Coming to Every Stage of Your Buyer’s Journey
  • The Fundamentals of Link Building for E-Commerce & Affiliate Sites in 2021
  • Your Customer is Calling: Make the Most of Your Marketing Spend with Call Tracking
See More Webinars

Research Reports

  • Local Marketing Solutions for Multi-Location Businesses
  • Enterprise Digital Asset Management Platforms
  • Identity Resolution Platforms
  • Customer Data Platforms
  • B2B Marketing Automation Platforms
  • Call Analytics Platforms
See More Research

Attend SMX For Only $99

h
Receive daily search news and analysis.

Channels

  • SEO
  • SEM
  • Local
  • Retail
  • Google
  • Bing
  • Social

Our Events

  • SMX
  • MarTech

Resources

  • White Papers
  • Research
  • Webinars

About

  • About Us
  • Contact
  • Privacy
  • Marketing Opportunities
  • Staff

Follow Us

  • Facebook
  • Twitter
  • LinkedIn
  • Newsletters
  • RSS
  • Youtube

© 2021 Third Door Media, Inc. All rights reserved.

Your privacy means the world to us. We share your personal information only when you give us explicit permission to do so, and confirm we have your permission each time. Learn more by viewing our privacy policy.Ok