Alphabet Inc.'s Google is likely to receive its first fine under the European Union's Digital Markets Act in the coming months, and the European Commission is currently preparing its decision, three people familiar with the matter told Reuters.
As the EU's competition enforcement body, the Commission imposed a €2.95 billion ($3.45 billion) fine on Google earlier this month under outdated antitrust rules for favoring its own online advertising technology services and promoting the central role of its AdX ad exchange platform at the expense of rivals and online publishers.
The pending new fine relates to allegations made in March that Google favored its own vertical search engines, such as Google Shopping, Google Flights, and Google Hotels, over rivals, according to Reuters.
Vertical search engines focus on a specific type of information or content rather than a general search like traditional Google Search.
The new case against Google was brought under the European Union's Digital Markets Act, which sets out a list of dos and don'ts for tech giants and came into effect in 2023.
These rules aim to curb the influence of large companies, give rivals room to compete, and provide users with greater choice. Violations can cost companies up to 10% of their annual global sales.
The world's most popular search engine has presented several proposals in an attempt to address concerns and avoid a second fine, but it has failed to assuage criticism from price comparison sites, airlines, hotels, and retailers.
Sources said Google could still avoid the fine if it presented an improved proposal.
In a response to Reuters, Google referred to comments made by its senior competition officer, Oliver Bethell, earlier this year.
"While we have been invited to provide feedback throughout this process, we now need to conclude this discussion without prioritizing the interests of a few at the expense of the millions of people and companies in Europe who benefit from search," Bethel said.
Informed sources said the Commission is in no hurry to conclude the case, given criticism from the Trump administration regarding the EU's crackdown on tech giants and current trade tensions between the EU-27 and the United States.
However, the European Commission has said it has no intention of backing down from its scrutiny of US tech giants despite US pressure.
Google would be the third US tech giant to be fined under the Digital Markets Act, following penalties imposed on Apple and Meta in April.
The European Union is preparing to impose its first fine on Google under the Digital Markets Act.
