Google has been slapped with fines totaling 890 million euros ($1.01 billion US, or $1.43 billion Cdn) by the European Commission for violating EU regulations aimed at curbing the dominance of Big Tech companies. Despite the hefty penalties, Google and its parent company Alphabet are expected to dodge additional fines as EU authorities commended their efforts to adhere to the significant legislation.
The fines highlight Europe’s commitment to preventing Big Tech firms from stifling competition, in defiance of criticism and threats of retaliatory tariffs from the U.S. One fine of 460 million euros ($738.5 million Cdn) was imposed on Google under the Digital Markets Act (DMA) for favoring its own services in various search results categories like shopping, hotels, transportation, and sports. Another fine of 430 million euros ($689 million Cdn) was levied for Google’s restrictions on Google Play that prevented app developers from directing users to cheaper offers on rival platforms.
EU’s antitrust chief, Teresa Ribera, emphasized the importance of upholding laws and ensuring fair competition. Last year, Apple and Meta Platforms faced penalties under the DMA, reflecting the EU’s goal of maintaining a level playing field in the tech industry.
Google has the option to appeal the decision and has 60 days to comply with the commission’s orders 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 compliance measures have led to the removal of popular features like real-time search functionalities and safety protections on Google Play.
The crackdown on Big Tech by European authorities has drawn criticism from the U.S. administration, with threats of tariffs in response to what is perceived as targeting American companies unfairly. U.S. Trade Representative Jamieson Greer expressed concerns about the potential impact on transatlantic trade stability.
In response to pressure from U.S. lawmakers, the EU’s designations of Apple, Meta, and Amazon as gatekeepers under DMA rules were questioned, particularly in comparison to Chinese companies excluded from such labels. The commission highlighted positive dialogues with Google and acknowledged progress made towards DMA compliance, signaling a move away from daily penalties for non-compliance.
Google’s initiatives to adjust its search presentation and steering terms on Google Play have been recognized as steps in the right direction by the EU watchdog. Ongoing discussions between Google and EU authorities are set to continue regarding the application of the decision to Google’s AI-generated summaries and related services.
