Officials say the company used its dominant position as a search engine to steer traffic toward its own services while limiting the visibility of competing businesses. The penalty is Google’s first under the bloc’s major big tech law, the Digital Markets Act (DMA), and is the result of a series of EU investigations into the American tech giant. However, the firm is likely to avoid fresh fines as EU regulators lauded good progress in its ongoing efforts to comply with the landmark legislation. The fine could, nonetheless, lead to a further political clash with the US, whose president, Donald Trump, has threatened to introduce harsh tariffs in response to what he views as unfair European regulations. What were the violations? The firm has been fined over two separate violations. The first – worth €460 million – is linked to Google’s self-preferencing of its own services in search results, directing web users to platforms such as Google Shopping and Google Hotels over competing services. The second fine, worth €490 million, is in response to restrictions placed on businesses that directed consumers to alternative purchase platforms outside Google Play, the company’s digital content store. EU regulators said that the company’s actions restricted competition and reduced opportunities for other businesses to reach users. “We found that Google harms businesses offering similar services, such as shopping or sports, by not granting them the same level of prominence on Google Search,” Henna Virkkunen, EU commissioner responsible for tech sovereignty, said in a statement. Google, which now has 60 days to comply with EU law, argues that its platforms are designed to optimize user experience and that any changes to its services could ultimately harm European consumers. “This isn't fair competition; it’s product degradation driven by a small group of self-serving complainants, with European businesses and consumers taking the hit. Regulation should improve products, not make them worse,” said Google President of Global Affairs Kent Walker. He added that EU regulations could force Google to limit the availability of real-time search tools that “Europeans love,” including features like instant pricing and direct suggestions on hotels, flights, and restaurants, and will also weaken safety protections on Google Play. ‘Constructive dialogue’ The Commission, which acts as the EU competition enforcer, pointed to a “constructive dialogue” with Google and significant progress made to comply with the Digital Markets Act, indicating that daily penalties for non-compliance are likely off the table. "Google has proposed and started testing changes to how it presents its own services on Google Search for free services such as shopping, hotels and flights," the Commission said, calling it substantial progress. Google's changes to its steering terms on Google Play also received a tentative thumbs up from the Commission. But it remains to be seen how the decision will be received by Trump. Europe’s crackdown on Big Tech has angered the president, who has threatened to retaliate with tariffs for what he said are moves targeting US companies, while US lawmakers have also piled on the pressure. The fines are the third under the DMA after penalties handed out to Apple and Meta Platforms in April last year. Includes reporting from Reuters
