The European Commission is preparing to fine Google for the first time under the EU’s new Digital Markets Act (DMA), according to people familiar with the matter. The decision is expected in the coming months and follows complaints that Google has given unfair preference to its own vertical search services like Google Shopping, Google Flights, and Google Hotels.
Earlier this month, the Commission fined Google nearly 3 billion euros ($3.45 billion) for favoring its own online ad services, a penalty imposed under older antitrust rules. This new case is different because it falls under the DMA, which came into effect in 2023 and aims to curb the power of big tech companies by setting clear rules for fair competition. Fines under this law can reach up to 10% of a company’s global annual turnover.
Google has made several tries to appease critics, including comparison shopping sites and travel businesses, by proposing changes to its search results. However, these proposals haven’t been enough to stop the investigation or the potential fine. Still, sources say the company might avoid penalties if it improves its offer.
The Commission is not rushing to conclude the case, partly because of pressure and criticism from the Trump administration over the EU’s tough stance on American tech firms, as well as current trade tensions between the U.S. and the EU. Despite this, the EU has made it clear it will continue to scrutinize U.S. tech giants.
If fined, Google will be the third major U.S. tech company punished under the DMA, following Apple and Meta Platforms, both of which faced fines earlier this year. This marks a growing trend of European regulators enforcing stricter controls on big technology firms to ensure more competition and better choices for users.