EU Targets Ad Tech "Conflict of Interest": Google Fined Approximately 350 Billion Yen ─ 60-Day Rule and Separation Theory

EU Targets Ad Tech "Conflict of Interest": Google Fined Approximately 350 Billion Yen ─ 60-Day Rule and Separation Theory

2025年09月07日 11:11

Introduction: The "Emergency Brake" on the Giant Advertising Machine

The "search giant" was also a dominant force in the invisible plumbing of display advertising delivery, bidding, and inventory trading. However, Europe concluded that it had twisted the "valves" of this plumbing to its own advantage and imposed a fine of 2.95 billion euros. They ordered immediate correction of the conduct and submission of a plan within 60 days—warning that more powerful remedies, including possible structural separation, would be considered if they did not comply.Reuters


What Was the Issue: Two Cases of "Self-Preferencing"

The European Commission focused on the key elements of the advertising supply chain.

  • Publisher Side (Sellers): "Publisher ad servers" that manage ad spaces on sites and apps.

  • Market (Exchange): The "Ad Exchange (AdX)" which is central to bidding.

  • Advertiser Side (Buyers): "Buying tools (such as DV360 and Google Ads)" that automate bidding.


The Commission determined that Google had given preferential treatment to its own exchange on the publisher side servers and designed buyer tools to prioritize its own exchange, thereby strengthening AdX's central position and hindering competitors' entry and expansion. This resulted in fixed unfavorable fees and matching environments for publishers and competitors, impacting the revenue of advertisers and media.TechCruncheuronews


Contents of the Sanction: More Than Just a Fine

The amount (2.95 billion euros) certainly catches the eye. However, the main focus is onbehavioral remedies. The European Commission demands not only the cessation of "self-preferencing" but also measures to eliminate "conflicts of interest embedded throughout the supply chain." Google has been given a timeline to submit a plan within 60 days and implement it within an additional 30 days. If they do not comply, the possibility ofstronger remedies, including separation, has been suggested.Reuters


Google's Response: Immediate Appeal, Focusing on "Existence of Alternatives" and "Consumer Benefits"

Google deemed the decision "incorrect" and declared its intention to appeal. They argue that there are numerous alternatives for both buyers and sellers, and that the integration of services contributes to efficiency and quality improvement. They position the core issues of "self-preferencing" and "conflict of interest" as optimizations that do not harm public interest, competition, or innovation.TechCrunch


Regulatory Geopolitics: The Shadow of "301" from the White House

Immediately after the sanction announcement, U.S. President Trump reacted by calling it "unfair" and suggested the potential invocation of Section 301 of the Trade Act if necessary. The U.S. and Europe are already dealing with several contentious issues such as AI, semiconductors, and data transfer, and this decision could ripple into trade and security agendas. There are reports thata delay in the sanctions was explored for negotiation purposes, indicating the significant influence of international politics on policy decisions.Reuterseuronews


Why Now: The Continuity of Europe's "Platform Regulation"

In recent years, the EU has rapidly developed comprehensive regulations such asDMA/DSA in addition to general competition law (antitrust). While this review falls under the traditional context of abuse regulation, the concepts ofself-preferencing andgatekeeper conflicts of interest are also key terms in the DMA. The enforcement of "separation" and "interoperability" to promote free competition is a direction that the entire European regulatory architecture aims for (DMA general theory). *The formal basis for this case is an antitrust decision. The specifics of the burden will be visualized in future corrective plans.


Impact on Industry: "Visualization" of Fees and Redesign of Inventory Connections

In the short term,

  • on the publisher side, the focus will be on the disclosure and neutralization of algorithms for inventory routing (determining which exchanges to flow to and in what order),

  • equal access to competing exchanges,

  • and avoidance of conflicts of interest between buying tools and exchanges (e.g., information blocking, prohibition of preferential connections). These measures could lead to improvements in publishers' shares and a decrease in advertisers' effective CPM throughfee transparency andactivation of bidding competition. On the other hand, there could be counter-effects such as a decrease in optimization benefits from integration and increased costs of managing multiple vendors.Reuters


Market and Investor Perspective: How to Interpret the "Meaning of the Amount"

On social media and in investment communities, attention is focused more on the outcome ofstructural remedies than the absolute amount of the fine. Comments such as "the fine is chump change" and views that absorbing the one-time cost is easy given Google's revenue scale are spreading. On the other hand, there are also calm observations that "the obligation for transparency and interoperability is what will change the competitive environment."Hacker NewsReddit


Social Media Reactions: Analyzing Through Three Points

1) The Fine is a "Symbol," the Main Focus is Separation
On platforms like Hacker News and in advertising communities, there are voices saying "the fine is not a deterrent, separation is necessary." With the European Commission mentioning "strong remedies," there is renewed speculation about theseparation of ad servers/exchanges/buyer tools.Hacker News


2) The Tug-of-War Between Platforms and Nations
There is a growing view that "the more the U.S. government opposes, the less Europe can back down," and that "the intersection of trade and competition policy has become apparent," while there are also concerns aboutthe risk of retaliatory tariffs.Reuters


3) The "Breath of Relief" for Media/Publishers
On platforms like Reddit's Europe board, the topics include "whether publishers' shares will improve" and "whether it will lead to revenue diversification for the news industry." There is also a welcoming atmosphere if the long-standing issue ofthe opacity of fees is addressed.Reddit


Checklist for Practitioners: Preparing for the 60 Days

  • Publishers: Check the allocation logic for inventory connections, the operation of first-look/priority slots, and the independent audit system for logs.

  • Advertisers/Agencies: Redefine the neutrality of DSP routing, redesign supply path optimization (SPO), and redefine KPIs for brand safety and bidding transparency.

  • Ad Tech Companies: Clarify data sharing boundaries and information blocking (Chinese wall), fair request distribution, and log sharing SLA.

  • Legal/Compliance: Consider updatingcontract terms (handling of MFN, exclusivity, priority connection clauses) linked to the EU ruling's corrective plan.


Future Scenarios: Three Divergences

  1. Resolution through "Behavioral Remedies": Google's plan is accepted, and the market is gradually rewired. Short-term disruption, activation of small to medium-sized competitors.

  2. Development into "Structural Remedies": Due to insufficient compliance, moves towardsseparation of ad servers/exchanges/buyer tools or a review of the holding structure. Short-term operational burden is significant, but promotes competition in the medium to long term.

  3. "Long-Term Legal Battle": The issue is contested in appeal, and uncertainty continues until guidelines are finalized. Investment and M&A decision-making becomes more cautious.


Conclusion: The "Design Change" Beyond the Fine

This decision is a challenge to change not theamount but thedesign. Can the "invisible design" of preferential connections, information advantage, and integration benefits be reversed intotransparency and interoperability? The infrastructure of online advertising, depending on its course, will influence the sustainability of media and user experience. How will global regulatory authorities and platforms respond to the starting signal sounded by Europe?—all eyes are on the period beyond the "60 days" submission deadline.ReutersTechCrunch


Reference Articles

EU Fines Google 2.95 Billion Euros for Abusing Advertising Dominance
Source: https://www.bbc.com/news/articles/c1wgn3lre14o?at_medium=RSS&at_campaign=rss

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