Regulators from the European Union imposed a hefty fine of 2.95 billion euros ($3.5 billion) on Google for breaching competition laws by prioritizing its own digital advertising service.

As the administrative body for the 27-nation bloc and the leading antitrust authority, the European Commission mandated U.S. companies to cease their “self-preferences” and implement measures to eliminate “conflicts of interest” in the advertising technology supply chain.

The findings of the committee’s investigation indicated that Google “exploits” its dominant role within the ad technology sector.

In response, Google labeled the decision “incorrect” and announced plans to appeal.

Lee-Anne Mulholland, Google’s global regulatory director, commented, “This demands changes that could negatively impact countless European businesses by imposing unjust fines and inhibiting their profitability.”

This decision follows more than two years after the European Commission first raised antitrust accusations against Google. At that time, the Commission asserted that selling off parts of Google’s profitable digital advertising enterprise was the only viable way to address antitrust issues. However, this decision signifies a departure from their earlier stance and arises amid renewed tensions over trade, tariffs, and technology regulations between Brussels and the Trump administration.

Top officials in the EU have previously indicated that forced divestitures are being considered since past penalties against Google have proven ineffective in curbing anti-competitive practices, allowing the company to continue its behavior in other forms.

The committee’s penalty stems from a formal investigation initiated in June 2021, assessing whether Google compromised rival publishers, advertisers, and ad tech services in order to favor its own online display ad technology. Online display ads typically include banners and text that are customized based on user browsing patterns.

Mulholland asserted: “We are not anti-competitive in offering our services to advertisers and publishers. The alternatives to our services have never been more abundant.”