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, the commission disclosed on Thursday. Despite the penalties, the U.S. tech giant and its parent company Alphabet are expected to steer clear of additional fines as EU regulators commended their progress in adhering to the pivotal legislation.
This move by the European Commission highlights Europe’s commitment to preventing Big Tech firms from unfairly impeding competitors, despite facing criticism and threats of retaliatory tariffs from the United States. One of the fines, amounting to 460 million euros ($738.5 million Cdn), was imposed on Google under the Digital Markets Act (DMA) for favoring its own services in various sectors such as shopping, hotels, transportation, and sports in search results. Another fine of 430 million euros ($689 million Cdn) was specifically targeted at Google’s restrictions within its app store, Google Play, which prevented app developers from directing users to cheaper offerings on competing platforms.
EU antitrust chief Teresa Ribera emphasized the importance of upholding laws and ensuring full compliance with regulations. The fines on Google come after similar penalties were imposed on Apple and Meta Platforms last year under the DMA regulations.
In response to the commission’s orders to treat competitors fairly and allow app developers to guide users away from its app store, Google expressed discontent with the findings and hinted at the possibility of challenging the decision in court. Kent Walker, the company’s president of global affairs, criticized the impact of compliance measures on user experience, stating that certain features loved by Europeans, such as real-time pricing and direct availability for hotels, flights, and restaurants, would have to be removed due to the regulations.
The crackdown on Big Tech in Europe has drawn criticism from the U.S. administration, with President Donald Trump’s administration threatening retaliatory measures, including tariffs, in response to what they perceive as actions targeting American companies. U.S. Trade Representative Jamieson Greer warned that these actions, coupled with recent moves by the EU, pose a significant risk to transatlantic trade stability.
Amid escalating tensions, U.S. lawmakers have urged Trump to take action, claiming that the EU’s digital policies unfairly target American tech giants. They raised concerns about the designations of Apple, Meta, and Amazon as gatekeepers under the DMA rules, while excluding Chinese retail giants like Temu and AliExpress based on user metrics in Europe.
The European Commission acknowledged Google’s efforts to comply with the DMA, citing significant progress and indicating that daily penalties for non-compliance may not be necessary. The commission also noted Google’s proposed changes to how it presents its services on Google Search and Google Play, calling them substantial progress towards compliance. Talks will continue between the commission and Google to assess and implement further changes in line with the regulatory requirements.