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Google was fined a total of 890 million euros ($1.01 billion US, or $1.43 billion Cdn) on Thursday for violating European Union rules aimed at strengthening the power of Big Tech, the European Commission said.
However, the US tech giant and its parent Alphabet are likely to avoid new fines as EU regulators hailed positive progress in their ongoing efforts to comply with the landmark law.
The fines underscored Europe’s determination to prevent Big Tech companies from blocking rivals, defying US criticism and threats of retaliation.
A single fine of 460 million euros ($738.5 million Cdn) was given to Google by the European Commission under the Digital Markets Act (DMA) for favoring its shopping services, hotels, transportation and sports results in search results.
The second fine of 430 million euros ($689 million Cdn) targets Google’s restrictions on its Google Play app store that prevent app developers from directing free users to cheaper sources on rival app stores or websites.
“Our duty and responsibility is to comply with the rules, so that our rules are fully respected,” EU chief Teresa Ribera told reporters when asked about the US backlash.
Apple and Meta Platforms received DMA fines last year.
“The DMA ensures that we have a fair and level playing field. With these decisions we want to ensure that there is competition,” EU tech chief Henna Virkkunen told reporters.
Google is considering the complaint
Google – which has 60 days to comply with the commission’s orders to treat competitors in a fair and non-discriminatory way and to allow app developers to kick users out of its app store – criticized the EU’s findings and said it may take the commission to court.
“In order to comply, we must remove the real-time Search features that Europeans love – such as instant prices and direct availability of hotels, flights, and restaurants – and remove security protections from Google Play,” said the company’s president of global affairs, Kent Walker, in a statement.
“This is not fair competition; product degradation driven by a group of self-serving complainers, with European businesses and consumers at the forefront. The law should improve products, not make them worse,” he said.
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Europe’s attack on Big Tech has angered the administration of US President Donald Trump, who has threatened to retaliate with tariffs for what he said are measures against US companies, and US lawmakers are also putting pressure on them.
Earlier this week, 25 Republicans wrote to Trump, urging him to act, saying the EU’s digital policies unfairly target American tech companies.
In a letter seen by Reuters, US lawmakers questioned the commission’s designation of Apple, Meta and Amazon as gatekeepers under the DMA rules while Chinese giants Temu and AliExpress were excluded. Such labels depend on the number of users in Europe.
“If dialogue does not deliver quickly, the United States should use all available tools, including but not limited to Section 301 of the Trade Act of 1974,” they said, invoking the unfair trade practices clause that allows the US to impose tariffs or take other retaliatory measures.
The commission, acting as the EU’s competition watchdog, pointed to a “constructive dialogue” with Google and significant progress made to comply with the DMA, indicating that daily fines for non-compliance may be off the table.
“Google proposed and began evaluating changes in the way it presents its services in Google Search for free services such as shopping, hotels and flights,” the commission said, calling it a major step forward.
“The commission also notes that Google has proposed and begun to evaluate changes in the way it presents shopping ads and services related to content, such as sports,” it said, adding it would evaluate the changes and continue discussions with Google.
The EU watchdog also said that Google may apply the terms of Thursday’s decision to its AI overviews known as AI Overviews and AI Mode and that discussions will continue until then.
Google’s changes to its Google Play guidelines were marked as “good progress in compliance” by the commission.
