Google faces prospect of second EU fine under landmark tech rules: report

Alphabet Inc.’s Google is bracing for a second financial penalty under the European Union’s sweeping Digital Markets Act (DMA), Reuters reported, as regulators in Brussels prepare a draft decision on whether the company unfairly promoted its own vertical search services over rivals.

The development comes just weeks after the European Commission fined the tech giant €2.95 billion ($3.45 billion) for giving preferential treatment to its online display advertising services, reinforcing concerns about Google’s market dominance.

Second case targets search services

The looming fine stems from charges filed in March, alleging that Google favoured its vertical search products such as Google Shopping, Google Flights, and Google Hotels at the expense of competitors.

These services, which appear prominently in search results, have long been a point of contention for rival comparison sites, airlines, hotels, and retailers that claim Google’s practices limit visibility for alternative platforms.

The European Commission, which serves as the EU’s top competition authority, has been investigating whether these practices breach the DMA.

The rules set strict guidelines for so-called “gatekeeper” companies, including bans on self-preferencing that prevent large platforms from giving undue advantage to their own services.

Violations can result in fines of up to 10% of a company’s global annual revenue, making the stakes especially high for Google.

Alphabet reported more than $300 billion in revenue in 2024, underscoring the potential financial impact of any penalty.

Negotiations continue amid criticism

Google has made several proposals to address the EU’s concerns, but so far these have failed to satisfy regulators or critics.

Reuters report said the company still has a chance to avert the fine if it delivers a stronger proposal that levels the playing field for rivals.

The European Commission declined to comment, while Google pointed Reuters to earlier remarks by Oliver Bethell, its senior director for competition.

“While we have invited feedback throughout this process, we now need to bring this debate to an end without the interests of a few being prioritised over the millions of people and businesses in Europe who benefit from Search,” Bethell said.

The report added that there is no immediate rush to conclude the case, partly due to geopolitical considerations.

US President Donald Trump has criticised the EU’s regulatory actions against American technology companies, and the bloc is currently navigating broader trade tensions with Washington.

This has introduced an additional layer of caution in Brussels as it considers the timing and scope of its decision.

Growing pressure on big tech

The potential fine would mark another test of the EU’s determination to enforce its new regulatory regime, which aims to curb the influence of Big Tech firms and ensure fair competition across digital markets.

The DMA, which came into effect earlier this year, has already reshaped how large platforms operate in Europe by imposing strict compliance requirements.

For Google, repeated clashes with European regulators highlight the ongoing tension between innovation, consumer access, and fair market practices.

While the company insists that its services benefit millions of users and businesses, critics argue that entrenched advantages limit choice and suppress competition.