Google faces record fine in Europe over Digital Markets Act violations

Tech giant Google is facing one of the largest fines in history for allegedly violating the European Union's Digital Markets Act. According to a report by German daily Handelsblatt, the fine could exceed several hundred billion euros.

A final decision on the matter will be made by European Commission President Ursula von der Leyen, with an announcement possible before the summer break.

Google's parent company Alphabet has been accused of failing to properly comply with Europe's digital market law, which aims to reduce market dominance by big tech firms and increase competition.

The European Commission's investigation found that Google gives preferential treatment to its own services in its search results compared to competitors. The company has also been accused of limiting app developers' ability to direct users to alternative distribution channels.

The European Commission launched its investigation in March 2024. After a year, a preliminary report found that Google's practices were not in line with the law.

Commission official Teresa Ribera said their main goal is to foster a culture of compliance. The commission only moves to punitive measures if solutions cannot be found through dialogue.

The commission has stated that the solutions proposed by Google so far have not been satisfactory. The company was given additional time this month but failed to make the desired progress. If ultimately fined, it would be the largest penalty under this law.

Google, however, claims that the changes it has made to its services to comply with the commission's directives have harmed the user experience. The company says European users are no longer receiving the same quality of service as before.

Google has previously faced multiple investigations and fines from the European Union in various competition cases, including its search service, advertising business, smartphone-related policies and AI-based services.