EU targets Google in fresh antitrust probe over search ad auctions

New Delhi: Google is facing a new antitrust probe in the European Union over how its search advertising auctions set prices, after regulators flagged concerns that the company may be pushing costs up for advertisers.

The European Commission has sent a letter dated February 9 to businesses that may be affected, outlining its preliminary concerns, according to reports that cited a copy of the communication. 

Recipients of the letter were given ⁠until March 2 to provide feedback.

According to news reports, in the letter, the Commission said it has indications that Google may be “artificially increasing the clearing price” of search ad auctions “to the detriment of advertisers”.

Search ads are sold via real-time auctions, where multiple signals help decide which ad appears and what the advertiser pays. Regulators are examining whether auction design or related practices could be distorting outcomes in a way that disadvantages buyers and limits competition.

The move adds to a long-running enforcement track record in Europe for Google. Most recently, the Commission fined Google €2.95 billion in September 2025 in a separate case focused on online advertising technology practices.

If the Commission ultimately finds a breach of EU competition rules in the new probe, penalties can reach up to 10 per cent of a company’s global annual turnover, alongside possible behavioural remedies.

Google has said ad prices are determined through real-time auctions and that advertisers have choices, according to reports. The Commission is expected to continue gathering inputs from advertisers and other market participants as the review progresses.