Alphabet Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google could soon face one of the largest penalties ever imposed under the EU's Digital Markets Act as regulators intensify scrutiny of the company's search business practices.
EU Targets Google Search Practices
According to a report by Germany's Handelsblatt newspaper, the European Commission is preparing a high triple-digit million euro fine against Google over concerns that the tech giant unfairly prioritizes its own services in search results, Reuters reported on Monday.
The decision is reportedly nearing completion and could be announced before the EU's summer break.
The investigation, formally launched in March 2025, focuses on whether Google violated the bloc's Digital Markets Act, or DMA, a landmark law designed to curb the dominance of major technology companies.
Regulators are examining whether Google gives preferential treatment to its own platforms, including shopping, travel and local search services, at the expense of rivals.
EU Plans To Focus On Compliance
Despite the potential record-setting penalty, EU officials signaled that forcing compliance remains the primary objective.
European Commission spokesperson Thomas Regnier told the publication that regulators are more interested in ensuring companies follow the DMA than simply imposing fines.
Earlier this month, the Commission reportedly granted Google additional time to address concerns after regulators found the company's earlier proposals insufficient.
Google Pushes Back
Google criticized the impact of the EU's rules on its search engine, arguing that the mandated changes have harmed the user experience in Europe.
A company spokesperson described the DMA-related modifications as the "biggest downgrade" in the history of Google Search and said the changes create a "second-rate experience" for European users while benefiting a limited number of competitors.
Google did not immediately respond to Benzinga's request for comments.
The development also comes as Google challenged a landmark federal antitrust decision that concluded the company unlawfully preserved its online search dominance through multibillion-dollar default search deals.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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