EU Plans Second Major Fine Against Google Over Search Services

Google is facing a potential second major fine from the European Union under the Digital Markets Act for allegedly favoring its own vertical search services, such as Google Shopping, Flights, and Hotels, over competitors. This follows a recent €2.95 billion ($3.45 billion) penalty related to Google's ad tech business, highlighting ongoing regulatory pressure on the company in Europe. The EU's Digital Markets Act prohibits "gatekeeper" companies from self-preferencing, and violations can lead to fines up to 10% of global revenue, which could amount to billions given Alphabet's $300 billion-plus revenue in 2024. Google has proposed fixes, but regulators and competitors find them insufficient, and the company must offer stronger concessions to avoid another fine. Despite these challenges, Alphabet, Google's parent company, continues to demonstrate strong financial health and market dominance, with robust revenue growth and a market capitalization around $2.97 trillion. The European Commission is taking a measured approach amid broader tensions with Washington over Big Tech regulation.