Google EU Antitrust 2026: New Investigation Targets Advertising Price Manipulation

What is the Google EU Antitrust Investigation 2026?

The European Commission has launched a fresh antitrust investigation into Google's advertising practices in February 2026, marking another significant regulatory challenge for the tech giant. This probe focuses on allegations that Google may be artificially inflating advertising prices through its search advertising auction system, potentially violating EU competition rules. If substantiated, Google could face fines up to 10% of its global annual revenue, which could amount to billions of euros given the company's massive advertising business.

Background: Google's History with EU Regulators

This isn't Google's first encounter with European antitrust authorities. The company has already accumulated approximately €9.5 billion in EU fines over previous violations. Most recently, in September 2025, Google received a €2.95 billion penalty for 'self-preferencing' its own display advertising technology over competitors. The current investigation represents a continuation of the European Commission's aggressive enforcement of competition rules, particularly under the Digital Markets Act framework that designates Google as a 'gatekeeper' company with special obligations.

The investigation follows a similar pattern to previous cases where the European Commission antitrust actions have targeted dominant tech companies. According to documents seen by Bloomberg, EU regulators suspect Google is 'artificially increasing the clearing price' of ad auctions, which could disadvantage advertisers and harm market competition.

How Google's Advertising Auctions Work

Google's advertising system operates through real-time auctions where advertisers bid for ad placements. The system considers multiple factors including bid amount, ad quality, and relevance to determine which ads appear and at what price. Google defends its pricing mechanism as transparent and market-driven, stating that 'ad prices are determined by real-time auctions designed to show relevant ads based on factors like advertiser competition and ad quality.'

However, regulators are investigating whether Google's dominant market position—controlling approximately 80% of the global PPC market and 27% of worldwide digital ad spend—allows it to manipulate these auctions to its advantage. The concern is that Google might be using its market power to artificially inflate prices, forcing advertisers to pay more than they would in a truly competitive market.

Key Allegations in the 2026 Investigation

• Artificial price inflation in search advertising auctions
• Potential manipulation of auction clearing prices
• Anti-competitive practices that harm advertisers
• Possible violations of EU competition rules and Digital Markets Act obligations

Potential Financial Impact and Penalties

If the European Commission finds Google guilty of antitrust violations, the financial consequences could be substantial. Under EU rules, companies can be fined up to 10% of their global annual turnover. Given Google's parent company Alphabet reported over $300 billion in revenue in 2025, a maximum penalty could theoretically exceed $30 billion.

More realistically, based on previous cases, fines typically range from 1-5% of global revenue. The recent €2.95 billion fine in 2025 represented approximately 1% of Alphabet's annual revenue. This investigation comes at a time when the Digital Markets Act enforcement is becoming increasingly aggressive, with the EU preparing to target multiple US tech companies with potential fines exceeding €100 billion collectively.

Google's Response and Defense Strategy

Google has consistently defended its advertising practices, arguing that its auction system is fair and transparent. In response to the investigation, Google stated: 'Our ad prices are determined by real-time auctions designed to show relevant ads based on factors like advertiser competition and ad quality. The quality factor can result in higher prices for better-performing ads.'

The company is likely to mount a vigorous defense, potentially appealing any negative findings as it has done with previous EU decisions. Google's legal team will probably argue that its advertising system benefits both advertisers and consumers by ensuring relevant ads appear in search results.

Broader Implications for Digital Advertising

This investigation has significant implications for the entire digital advertising industry. As the dominant player with approximately 7 million businesses using its advertising platform, Google's practices set industry standards. The outcome could influence how advertising auctions operate across the digital ecosystem and potentially lead to structural changes in how digital advertising markets function.

The investigation also occurs against the backdrop of escalating US-EU trade tensions, with President Donald Trump threatening retaliation against European regulatory actions. This creates a complex geopolitical dimension to what might otherwise be a straightforward competition case.

FAQ: Google EU Antitrust Investigation 2026

What is Google being investigated for in 2026?

Google is being investigated for allegedly artificially inflating advertising prices through its search advertising auction system, potentially violating EU competition rules.

How much could Google be fined?

If found guilty, Google could face fines up to 10% of its global annual revenue, which could amount to billions of euros based on its current revenue of over $300 billion.

Has Google faced EU fines before?

Yes, Google has accumulated approximately €9.5 billion in previous EU antitrust fines, including a €2.95 billion penalty in September 2025 for self-preferencing its advertising technology.

What is the Digital Markets Act?

The Digital Markets Act is EU legislation that designates large tech companies as 'gatekeepers' and imposes special obligations to ensure fair competition in digital markets.

When will the investigation conclude?

The investigation is in its early stages as of February 2026, and formal proceedings could take months or even years to complete, depending on the complexity of the case.

Sources

Reuters: Google Targeted by EU Over Search Advertising Practices

Yahoo Finance: Google Hit with Fresh EU Antitrust Probe

Economic Times: EU Investigates Google Advertising Practices

Strataigize: Google Ads Statistics 2026