Alphabet-owned Google is set to be charged by the European Commission for breaching EU rules designed to curb the power of Big Tech, according to sources familiar with the matter. The charges come after Google’s proposed changes to its search result format failed to address concerns raised by both EU regulators and competitors.
The case is part of the European Union’s broader crackdown on dominant digital platforms under the Digital Markets Act (DMA), which aims to ensure a level playing field for businesses operating online. If found guilty of breaching the DMA, Google could face fines of up to 10% of its global annual revenue.
EU’s ongoing investigation into google
The European Commission has been investigating Google since March 2023, focusing on whether the company:
- Favours its own vertical search engines—such as Google Shopping, Google Flights, and Google Hotels—over competitors.
- Discriminates against third-party services in search results, limiting their visibility to users.
According to sources, the imminent charges relate specifically to these concerns.
EU competition regulators suspect that Google’s search algorithms unfairly prioritise its own services, making it harder for rival platforms to compete. This has been a longstanding issue, with competitors such as price-comparison websites, online retailers, and travel platforms arguing that Google gives itself an unfair advantage in search rankings.
Google’s response to EU scrutiny
Google has attempted to address regulatory concerns by modifying its search result formats in recent months. However, these adjustments have been widely criticised by rival businesses, who argue that the changes still fail to comply with the Digital Markets Act.
In a December blog post, Oliver Bethell, Google’s EMEA competition director, insisted that the company was working towards a balanced solution with EU authorities. He warned that further modifications to search results to satisfy rivals could lead to the removal of certain user-friendly features, potentially harming consumers.
Despite these efforts, EU regulators remain unconvinced. One source revealed that officials were particularly unhappy with Google’s threat to bring back traditional blue links in search results if it could not reach an agreement with rivals. This approach is viewed as a negotiating tactic, rather than a genuine attempt to comply with EU regulations.
Growing tensions between the EU and the US
The case against Google is unfolding against a backdrop of increasing transatlantic tensions over technology regulation.
US President Donald Trump has consistently sided with American tech giants, criticising the EU’s regulatory approach and describing hefty fines against companies like Google as a disguised form of taxation on US businesses. This has led to concerns that EU regulators may face pressure to soften their stance on Big Tech in an effort to avoid escalating tensions with Washington.
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Potential consequences for Google
If the European Commission moves forward with DMA charges, Google could face severe penalties, including:
- Fines of up to 10% of its global annual revenue—which could amount to billions of euros.
- Further mandatory changes to its search and advertising models to ensure fair competition.
- Potential restrictions on its ability to promote its own services within search results.
In addition to this case, the European Commission is also investigating Google’s App Store policies. Regulators are looking into whether Google prevents app developers from informing users about alternative purchasing options outside the Play Store, which would be another violation of the Digital Markets Act.
The wider crackdown on big tech
Google is not the only US tech giant facing heightened scrutiny in the EU. The Commission is expected to finalise separate investigations into Apple and Meta Platforms in the coming months. These cases are reportedly at a more advanced stage, meaning Google’s charges may follow soon after.
As the EU intensifies its enforcement of Digital Markets Act regulations, the coming months could see a landmark legal battle between Brussels and some of the world’s most powerful technology firms. Google now faces the difficult task of either complying with stricter European rules or preparing for a prolonged legal fight.
