Mexico drops antitrust case against Google after multi-year probe

New Delhi: Mexico’s antitrust regulator, the Federal Economic Competition Commission (Cofece), has closed its investigation into Google without imposing any penalties, concluding that the company did not engage in monopolistic practices in the country’s digital advertising sector.

The probe, which began in 2020, examined Google’s advertising services through its search engine and on third-party websites. Authorities looked into whether the platform’s design gave Google an undue advantage over competitors in the online advertising market.

In a statement released on Friday, Cofece said the investigation found that advertisers using Google’s search engine were not compelled to purchase ads on third-party websites as part of their campaigns. “We appreciate COFECE's decision recognizing that our products give advertisers the freedom and control to use our tools in the ways that best suit their needs,” a Google spokesperson said.

Had Cofece concluded otherwise, Google could have faced a fine of up to 8% of its annual revenue in Mexico. While Alphabet, Google’s parent company, does not break out specific revenue for Mexico in its financial reports, its 2024 earnings show the "other Americas" region which includes Latin America brought in approximately $20.4 billion.

The decision comes at a time when Google continues to face antitrust scrutiny in several countries. In the United States, a federal judge ruled last year that the company holds an unlawful monopoly in online search and associated advertising services. The U.S. Department of Justice and several states have pushed for remedies, including the end of agreements that make Google the default search engine on devices.

In a separate U.S. case, another judge found Google to have illegally dominated two markets within the online advertising ecosystem. The Department of Justice has called for structural changes, including the divestment of Google Ad Manager, which includes its ad server and ad exchange operations.