Listen to this article
Estimated 4 minutes
The audio version of this article is generated by AI-based technology. Mispronunciations can occur. We are working with our partners to continually review and improve the results.
Google was fined a total of 890 million euros ($1.01 billion US, or $1.43 billion Cdn) on Thursday for flouting European Union rules aimed at reining in the power of Big Tech, the European Commission said.
However, the U.S. tech giant and its parent Alphabet are likely to avoid fresh fines as EU regulators lauded good progress in its ongoing efforts to comply with the landmark legislation.
The fines underscored Europe's determination to prevent Big Tech companies from thwarting rivals, defying U.S. criticism and retaliatory tariff threats.
One fine of 460 million euros ($738.5 million Cdn) was handed out to Google by the European Commission under the Digital Markets Act (DMA) for favouring its own services in shopping, hotels, transport and sports results in search results.
A second fine of 430 million euros ($689 million Cdn) targeted Google's restrictions on its app store Google Play preventing app developers from steering users free of charge to cheaper offers on rival app stores or websites.
"Our duty and obligation is to comply with the laws, that our laws are fully respected," EU antitrust chief Teresa Ribera told reporters when asked about U.S. pushback.
Apple and Meta Platforms incurred DMA penalties last year.
"The DMA is to make sure we have a fair and level playing field. With these decisions we want to make sure there is competition," EU tech chief Henna Virkkunen told reporters.
Google considers appeal
Google — which has 60 days to comply with the commission's orders to treat rivals in a fair and non-discriminatory manner and to allow app developers to steer users away from its app store — criticized the EU findings and said it might take the commission to court.
"To comply, we are having to strip away real-time Search features Europeans love — like instant pricing and direct availability for hotels, flights, and restaurants — and dismantle safety protections on Google Play," the company's president of global affairs, Kent Walker, said in a statement.
"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," he said.
WATCH \| Big Tech and the Republican shift:
How much money has Big Tech given to Donald Trump? \| About That
U.S. President Donald Trump raised a record amount of corporate donations for his inauguration, millions of which were donated by CEOs of major tech companies like Google, Apple, Amazon and Meta. Andrew Chang explains the shift in Trump's relationships with these industry leaders since his first term, and the symbolism of their proximity to the president.
Images provided by Getty Images, Reuters and The Canadian Press.
Europe's crackdown on Big Tech has angered U.S. President Donald Trump's administration, which has threatened to retaliate with tariffs for what he said are moves targeting U.S. companies while U.S. lawmakers have also piled on the pressure.
Earlier this week, 25 Republicans wrote to Trump, urging him to act, saying the EU digital policies unfairly target American tech companies.
In the letter seen by Reuters, the U.S. lawmakers questioned the commission's designations of Apple, Meta and Amazon as gatekeepers under DMA rules while Chinese retail giants Temu and AliExpress are excluded. Such labels depend on the number of users in Europe.
"If a 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 an unfair trade practices statute that allows the U.S. to impose tariffs or take other retaliatory measures.
The commission, which acts as the EU competition enforcer, pointed to a "constructive dialogue" with Google and significant progress made to comply with the DMA, 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.
"The Commission also notes that Google has proposed and started testing changes to how it presents shopping ads and content related services, such as sports," it said, adding it would assess the changes and continue talks with Google.
The EU watchdog also said Google may apply the principles of Thursday's decision to its AI-generated summaries known as AI Overviews and AI Mode and that talks would continue to this end.
Google's changes to its steering terms on Google Play were characterized as "good progress towards compliance" by the commission.