EU Hits Google With $1 Billion DMA Fine Amid Trump Trade Tensions
AI-generated image · Bay Street Wire
The European Commission's latest crackdown on tech gatekeepers sets the stage for a regulatory collision with the U.S. administration.
The European Commission (EC) has ordered Google to pay more than $1 billion in fines for violating the Digital Markets Act (DMA), Ars Technica reports. The penalty includes $522 million for self-preferencing Google Search services and $488 million for anti-steering practices that restricted app developers from directing users to cheaper options outside Google Play.
Google has 60 days to implement changes to ensure third-party services in categories such as flights, hotels, and shopping are treated fairly. While Google's President of Global Affairs, Kent Walker, told Reuters that the company disagrees with the decision and is considering an appeal, the EC confirmed Google has already made progress on steering terms and is testing changes to search results. Google also stated it will voluntarily align AI Mode and AI Overviews with EC expectations.
The ruling intensifies a geopolitical rift. According to Reuters, 25 Republican lawmakers urged Donald Trump to retaliate against the fine via trade investigations, arguing the DMA is a tool for "regulatory coercion" and "economic extraction" against U.S. firms. The lawmakers noted that Chinese companies like AliExpress and Temu are not bound by the same rules, and warned that EU access to the U.S. market could be limited.
EC spokesperson Thomas Regnier told Reuters that the EU maintains the "sovereign right" to regulate economic activities on its territory, though he expressed hope for diplomatic cooperation. Meanwhile, Yelp's vice president of public policy, David Segal, told Ars Technica he "applauded" the decision for addressing Google's abuses.