Exclusive-Google likely to be hit with first EU antitrust fine under new EU law, sources say

By Foo Yun Chee

BRUSSELS (Reuters) -Alphabet's Google is likely to be hit with its first fine under landmark new EU tech rules in the coming months, and the European Commission is now drafting its decision, three people with direct knowledge of the matter said.

Acting as the EU's competition enforcer, the Commission handed Google a 2.95-billion-euro ($3.45 billion) fine earlier this month under older antitrust regulation for favouring its online display technology services and reinforcing its ad exchange AdX's central role to the detriment of rivals and online publishers.

The looming new fine relates to charges brought in March that Google favoured its vertical search engines such as Google Shopping, Google Flights and Google Hotels over rivals.

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The new case against Google was brought under the EU's Digital Markets Act, which sets out a list of dos and don'ts for tech giants and which entered into force in 2023.

The rules aim to rein in the power of large companies, giving rivals room to compete and users more choice. Violations can cost companies as much as 10% of their annual global sales.

The world's most popular search engine has made several proposals in a bid to address concerns and stave off a second fine but has failed to quell criticism from comparison shopping sites, airlines, hotels and retailers.

Google could still avert a fine if it comes up with an improved proposal, the sources said.

The Commission declined a Reuters request for comment.

Responding to Reuters questions, Google pointed to comments made by its senior director for competition, Oliver Bethell, earlier this year.

"While we have invited feedback throughout this process, we now need to bring this debate to an end without the interests of a few being prioritised over the millions of people and businesses in Europe who benefit from Search," he had said.

The people familiar with the matter said the Commission is in no rush to wrap up the case in view of criticism from the Trump administration over the EU's crackdown on Big Tech and current trade tensions between the 27-nation bloc and the United States.

Still, the EU executive has said that it does not intend to back down from its scrutiny of U.S. Big Tech despite U.S. pressure. Google would be the third U.S. tech giant to be fined under the DMA after penalties handed out to Apple and Meta Platforms in April.

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(Reporting by Foo Yun Chee; Editing by Joe Bavier and Mark Porter)