Google faces EU fine for boosting its own search platforms over rivals

Google may face its first EU fine under the new Digital Markets Act for giving unfair advantage to its own services like Google Shopping, Flights and Hotels, hurting competition and rivals

Google could soon face its first penalty under the European Union’s new Digital Markets Act (DMA), according to a Reuters report. The European Commission is currently drafting its decision, which is expected in the coming months. 

The Commission, which acts as the EU’s competition watchdog, already fined Google €2.95 billion ($3.45 billion) earlier this month under older antitrust rules. That case found the company had given an unfair edge to its advertising services and reinforced the dominance of its ad exchange, AdX, to the disadvantage of rivals and publishers, the news report said.

 

Fresh charges on search services

The upcoming penalty is linked to complaints that Google promoted its own vertical search tools, such as Google Shopping, Google Flights, and Google Hotels, over competing services. The case was filed in March under the DMA, which came into force in 2023. 

 

The DMA outlines strict dos and don’ts for major tech firms, aiming to reduce their market dominance, create space for competition, and give users more choice. Fines can amount to as much as 10 per cent of a company’s annual global turnover, Reuters reported. 

Google has submitted several proposals to address regulators’ concerns, but has not convinced rivals, including shopping sites, airlines, hotels, and retailers. Sources told Reuters that Google could still avoid the fine if it makes stronger commitments.   

 

Google pushes back

In response to Reuters’ questions, Google mentioned earlier remarks from its senior director for competition, Oliver Bethell.

“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 had said. 

The Commission is not rushing to close the case, partly because of criticism from the Trump administration over Europe’s scrutiny of US tech giants and ongoing trade tensions between Washington and Brussels. Still, the EU has stressed it will not scale back its enforcement. 

If fined, Google would become the third US company penalised under the EU’s Digital Markets Act, following Apple and Meta earlier this year.

 

China ends its Google antitrust probe

China has dropped its antitrust investigation into Google, the Financial Times reported last week. The decision comes as Beijing engages in new trade talks with Washington over TikTok and Nvidia. 

Analysts suggest the move is tactical, with China shifting its focus to Nvidia as leverage in US-China negotiations while signalling flexibility by closing the Google case. 

The investigation, launched in February, had accused Google of potentially violating China’s anti-monopoly laws, though no specific charges were made public. Google has not yet received official confirmation of the case being closed.   

 

Google’s legal troubles in the US

Google faces an ongoing legal battle in the United States, where the Department of Justice and several states sued the company in 2020. The case alleges Google abused its dominance in online search and advertising by paying billions to device makers and browser companies to secure Google Search as the default option. 

The government argued this practice limited competition from rivals like Bing and DuckDuckGo. Remedies considered included breaking up parts of the company, but the court stopped short of that, instead introducing new measures to restrict Google’s anti-competitive conduct while allowing it to keep Chrome under its control.