Google Faces Possible Fine in Mexico Over Monopoly Practices

Mexico’s Federal Economic Competition Commission (COFECE) is expected to issue a final ruling on its investigation into Google's alleged monopolistic practices in the country by June 17, reports Reuters. An adverse decision could result in a financial penalty of up to 8% of Google's annual revenue in Mexico, which would represent an unprecedented fine from the regulator.

COFECE argues that Google created and maintained an unlawful monopoly in Mexico’s digital advertising ecosystem. This aligns with a broader global trend in regulatory scrutiny of major technology companies. “Being big is not bad. What matters is that you do not take out any competitors with your products, even though yours can be efficient, and that is why you have more users,” says Lina Ornelas, Director of Public Policy and Government Relations, Google Mexico, back in 2020 in response to the anticompetitive investigations against the company.

The investigation began in 2020 and moved into a formal trial phase in 2023, when COFECE issued a summons to Google. During this phase, the company was allowed to submit evidence to counter the allegations. Procedural records say that the investigation has been extensive. COFECE formally requested financial information from Mexico’s Tax Administration Service (SAT) to evaluate Google’s operations. A final oral hearing took place on May 20, 2025, marking the last procedural step before the verdict. Political interest has also escalated, with lawmakers from the MORENA party urging COFECE to conclude the case.

Mexican law permits a maximum fine of 8% of a company’s domestic revenue for monopolistic behavior. While Alphabet, Google's parent company, does not provide country-level revenue data, it reported about US$20.4 billion in 2024 for its “other Americas” segment, which includes Latin America. A significant fine would follow earlier high-profile penalties by COFECE. For example, in 2022, the regulator imposed a fine of MX$2.4 billion (US$126.03 million) on a group of liquefied petroleum gas distributors for price-fixing.

If COFECE rules against Google, the company could seek an injunction to delay the enforcement of the decision. This would allow a specialized court to review and either uphold or overturn the ruling.

International Regulatory Parallels

The Mexican case reflects similar legal challenges Google faces globally. In the United States, a district court judge found that Google maintained an illegal monopoly in online search and related advertising markets. The Department of Justice (DOJ), along with several states, has proposed remedies that include requiring Google to share search data and terminate substantial payments to device manufacturers, such as Apple, to secure default search engine status.

In another case, a US federal judge ruled that Google illegally dominated two markets for advertising technology. The US Department of Justice (DOJ) has requested that the company divest at least Google Ad Manager, which includes both its publisher ad server and ad exchange.

Google has faced other disputes with the Mexican government. President Claudia Sheinbaum's administration filed a legal complaint against the company for altering the name of the “Gulf of Mexico” to the “Gulf of America” for users in the United States on its mapping service.