Google has been fined €2.95 billion (£2.5 billion) by the EU for allegedly abusing its power in the ad tech sector - the technology that determines which adverts should be placed online and where.

The European Commission said on Friday the tech giant had breached competition laws by favouring its own products for displaying online ads, to the detriment of rivals.

This move comes amid increasing scrutiny by regulators worldwide over the tech giant's empire in online search and advertising.

Google told the BBC the Commission's decision was wrong and it would appeal.

According to Lee-Anne Mulholland, global head of regulatory affairs at Google, the decision imposes an unjustified fine and requires changes that will hurt thousands of European businesses by making it harder for them to make money.

In its findings, the Commission accused Google of self-preferencing its own technology above others.

It noted that Google had intentionally elevated its advertising exchange, AdX, over competing exchanges, leading to higher costs for competitors and publishers.

This behavior has reportedly resulted in increased costs for consumers as well.

The regulator has mandated the company to put an end to such practices, alongside the nearly €3 billion penalty.

Third Time Rules Broken

This penalty marks one of the largest fines imposed on tech companies for breaching EU competition rules. Google faced a similar fine of €4.34 billion (£3.9 billion) in 2018 for using its Android operating system to monopolize that market.

Teresa Ribera, executive vice president of the Commission, highlighted that Google's repeat violations warranted a higher fine. This is the third time Google breaks the rules of the game, she stated.

Furthermore, the Commission has given the tech giant 60 days to outline how it will reform its practices, or else face potential imposed solutions.

Ribera suggested that a structural remedy, such as selling part of its ad tech business, may be necessary to effectively resolve the conflict of interest.

Earlier this week, the Commission dismissed allegations of delaying the announcement of Google's fine amid trade tensions between the EU and U.S., despite President Donald Trump criticizing such enforcement actions against American tech firms.