Google Faces Landmark EU Fine Under New Tech Rules

Google is likely to face its first fine under the new EU Digital Markets Act due to favoring its vertical search engines. This follows a previous antitrust fine and highlights ongoing EU efforts to regulate large tech companies, despite opposition from the Trump administration and trade tensions with the US.

Alphabet's Google is potentially on track to face its inaugural penalty under new European Union technology regulations. The European Commission, acting as the EU's competition authority, is expected to make this decision in the coming months according to sources familiar with the situation.

Earlier, Google was fined 2.95 billion euros under older antitrust laws for prioritizing its online display tech services and ad exchange, AdX. The current impending fine pertains to allegations from March, alleging Google gave preferential treatment to its vertical search engines, including Google Shopping, Flights, and Hotels.

This case is brought under the EU's Digital Markets Act, effective since 2023, designed to moderate the dominance of major tech firms. While Google has proposed several solutions to address these concerns, it has yet to resolve the criticisms fully, leaving it at risk of a significant financial penalty.

(With inputs from agencies.)