Alphabet’s Google is likely to be hit with its first fine under landmark new EU tech rules in the coming months,
and the European Commission is now drafting its decision, three people with direct knowledge of the matter said.
Acting as the EU’s competition enforcer, the Commission handed Google a 2.95-billion-euro ($3.45 billion) f
ine earlier this month under older antitrust regulation for favoring its online display technology services and
reinforcing its ad exchange AdX’s central role to the detriment of rivals and online publishers.
The looming new fine relates to charges brought in March that Google favored its vertical search engines such as
Google Shopping, Google Flights and Google Hotels over rivals.
Trump Criticism, Trade Tensions Mean no Rush to Close Case
The new case against Google was brought under the EU’s Digital Markets Act, which sets out a list of dos and don
ts for tech giants and which entered into force in 2023.
The rules aim to rein in the power of large companies, giving rivals room to compete and users more ch
oice. Violations can cost companies as much as 10% of their annual global sales.
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The world’s most popular search engine has made several p
roposals in a bid to address concerns and stave off a second fine but ha
s failed to quell criticism from comparison shopping sites, airlines, hotels and retailers.
Google could still avert a fine if it comes up with an improved proposal, the sources said.
The Commission declined a Reuters request for comment.
Responding to Reuters questions, Google pointed to comments made
by its senior director for competition, Oliver Bethell, earlier this year.
“While we have invited feedback throughout this process, we now need to bring this debate to an end without th
e interests of a few being prioritized over the millions of people and bu
sinesses in Europe who benefit from Search,” he had said.
The people familiar with the matter said the Commission is
in no rush to wrap up the case in view of criticism from the Trump administration over the EU’s crackdown on Big Tec
h and current trade tensions between the 27-nation bloc and the United States.
Still, the EU executive has said that it does not intend to back dow
n from its scrutiny of U.S. Big Tech despite U.S. pressure.Google would be the third U.S. tech giant to be fined under the
DMA after penalties handed out to Apple AAPL.Oand Meta Platforms META.Oin April.