Google has been fined a total of 890 million euros ($1.01 billion US, or $1.43 billion Cdn) by the European Commission for violating European Union regulations aimed at curbing the dominance of Big Tech companies. Despite the hefty fines, the U.S. tech giant and its parent company Alphabet are expected to evade additional penalties as EU regulators acknowledged significant progress in their efforts to comply with the key legislation. These fines underscore Europe’s commitment to preventing Big Tech firms from unfairly competing with rivals, despite facing criticism and threats of retaliatory tariffs from the United States.
Google was slapped with a 460 million euro ($738.5 million Cdn) fine under the Digital Markets Act (DMA) for giving preferential treatment to its own services in search results related to shopping, hotels, transportation, and sports. Additionally, a separate fine of 430 million euros ($689 million Cdn) was imposed on Google for imposing restrictions on app developers on its Google Play store, prohibiting them from redirecting users to lower-priced offers on competing platforms.
EU antitrust chief Teresa Ribera emphasized the importance of upholding laws and ensuring full compliance with regulations, in response to questions about U.S. objections. Last year, Apple and Meta Platforms faced penalties under the DMA.
Google is considering appealing the decision and has been given 60 days to adhere to the commission’s directives to treat competitors fairly and allow app developers to guide users away from its app store. Kent Walker, Google’s president of global affairs, criticized the EU’s findings, stating that the company may take legal action against the commission. Walker highlighted that the compliance measures required by the fines could lead to the removal of popular features such as real-time search functionalities for European users.
The crackdown on Big Tech in Europe has drawn ire from the U.S. administration, particularly President Donald Trump, who has threatened retaliatory measures, including tariffs, against what he perceives as unfair targeting of American tech companies. U.S. Trade Representative Jamieson Greer expressed concerns about the potential impact on transatlantic trade stability, especially following recent moves by the EU, including financial support to Airbus.
In response to the EU’s digital policies, a group of 25 Republicans urged Trump to take action, arguing that the regulations unfairly favor American tech giants over their Chinese counterparts. The lawmakers suggested invoking Section 301 of the Trade Act of 1974 to address what they view as discriminatory practices against U.S. firms. However, the EU commission highlighted positive dialogue with Google and the substantial progress made towards DMA compliance, signaling a potential resolution without daily penalties for non-compliance.
The EU watchdog commended Google’s efforts to make changes in response to the fines, particularly in how it displays its services on Google Search and Google Play. Talks between the EU and Google are ongoing to ensure continued compliance with regulatory standards.