€2.95B EU competition fine hits Alphabet (NASDAQ: GOOGL) over ad tech

Rhea-AI Filing Summary

Alphabet Inc. reported that the European Commission has found its Google LLC subsidiary violated European competition laws through alleged “self-preferencing” practices in its advertising technology business on both the buy-side and sell-side. The decision includes a €2.95 billion fine and an order for Google to cease and desist the cited practices. Google plans to appeal the ruling, and Alphabet expects to record the fine as an expense in the third quarter of 2025, which will directly reduce reported earnings for that period.

Positive

• None.

Negative

• European Commission antitrust decision: EC found Google’s ad tech practices infringed European competition laws, signaling strong regulatory action against core advertising operations.
• Large financial penalty: The EC imposed a €2.95 billion fine, which Alphabet expects to accrue in Q3 2025, materially reducing earnings for that quarter.

Insights

Regulatory and legal risk analyst

EU imposes €2.95B competition fine on Google, hitting Alphabet’s Q3 2025 results.

The European Commission has concluded that Google LLC, a wholly owned subsidiary of Alphabet Inc., infringed European competition laws through “self-preferencing” in its advertising technology business. This decision targets conduct on both the buy-side and sell-side of ad tech, indicating scrutiny across multiple parts of Google’s advertising stack rather than a single product line.

The EC has imposed a €2.95 billion fine and ordered Google to cease and desist the identified practices. Alphabet states that it expects to accrue the fine in the third quarter of 2025, which will materially reduce net income and earnings for that quarter in a single, non-recurring charge. The company also notes that Google plans to appeal the ruling, so the longer-term legal and financial outcome depends on the appeal process and any future EC or court decisions.

In the near term, investors will see the impact as a sizeable legal expense in the Q3 2025 financial statements. Over time, changes required to comply with the cease-and-desist order could affect how Google operates parts of its ad tech business in Europe, but the filing does not quantify any operational or revenue effects.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549 

_________________________________________________

FORM 8-K

_____________________________________________________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)

September 5, 2025

____________________________________________________________

ALPHABET INC.

(Exact name of registrant as specified in its charter) 

_______________________________________________________________

Delaware			001-37580			61-1767919
(State or other jurisdiction of incorporation)			(Commission File Number)			(IRS Employer Identification No.)

1600 Amphitheatre Parkway

Mountain View, CA 94043

(Address of principal executive offices, including zip code)

(650) 253-0000

(Registrant’s telephone number, including area code)

Not Applicable    

(Former name or former address, if changed since last report) 

______________________________________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each class			Trading Symbol(s)			Name of each exchange on which registered
Class A Common Stock, $0.001 par value			GOOGL			Nasdaq Stock Market LLC
						(Nasdaq Global Select Market)
Class C Capital Stock, $0.001 par value			GOOG			Nasdaq Stock Market LLC
						(Nasdaq Global Select Market)
2.500% Senior Notes due 2029			—			Nasdaq Stock Market LLC
3.000% Senior Notes due 2033			—			Nasdaq Stock Market LLC
3.375% Senior Notes due 2037			—			Nasdaq Stock Market LLC
3.875% Senior Notes due 2045			—			Nasdaq Stock Market LLC
4.000% Senior Notes due 2054			—			Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 8.01.     Other Events.

On September 5, 2025, the European Commission (EC) announced its decision that Google LLC (“Google”), a wholly-owned subsidiary of Alphabet Inc. (“Alphabet”), had infringed European competition laws through “self-preferencing” practices on the buy-side and the sell-side relating to its advertising technology business. The EC decision imposes a €2.95 billion fine and directs Google to cease and desist the alleged “self-preferencing” practices. Google plans to appeal the ruling. Alphabet expects that it will accrue the fine in the third quarter of 2025.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

			ALPHABET INC.
Date: September 5, 2025			/s/ KATHRYN W. HALL
			Kathryn W. Hall
			Assistant Secretary

FAQ

What did Alphabet Inc. (GOOGL) disclose in this 8-K filing?

Alphabet Inc. disclosed that the European Commission determined its subsidiary Google LLC infringed European competition laws through “self-preferencing” practices in its advertising technology business and imposed a €2.95 billion fine.

How large is the European Commission fine against Google mentioned by Alphabet (GOOGL)?

The European Commission imposed a €2.95 billion fine on Google LLC related to alleged “self-preferencing” in its advertising technology business, according to Alphabet’s disclosure.

How will the €2.95 billion EU fine affect Alphabet’s (GOOGL) financial statements?

Alphabet expects to accrue the €2.95 billion fine in the third quarter of 2025, meaning it will be recorded as an expense that reduces net income and earnings for that quarter.

What conduct did the EU competition decision focus on for Google and Alphabet (GOOGL)?

The decision states that Google engaged in alleged “self-preferencing” practices on the buy-side and sell-side of its advertising technology business, which the European Commission determined infringed European competition laws.

Is Google appealing the European Commission’s competition ruling disclosed by Alphabet (GOOGL)?

Yes. Alphabet reports that Google plans to appeal the European Commission’s decision that found competition law infringements and imposed the €2.95 billion fine.

Does the EU decision require Google or Alphabet (GOOGL) to change its ad tech practices?

Yes. In addition to the fine, the European Commission’s decision directs Google to cease and desist the alleged “self-preferencing” practices in its advertising technology business.