European Union regulators are reportedly preparing to warn Google that it must make changes to its flagship search engine or face huge fines.
EU watchdogs are preparing a “formal charge sheet” focused on how Google displays links to competitors in embedded search services such as Google Flights or Google Hotels. Bloomberg reportedCiting people familiar with the matter.
The report said antitrust officials could announce their initial move by the end of October – though the timeline could be delayed following an upcoming leadership change at the European Commission. A final decision in the case is expected by next March.
Google could avoid potential fines by changing its business practices to address the EU's concerns. The company's lawyers have reportedly discussed potential reforms with regulators, such as adding an option that would allow users to easily navigate to rival services.
Google did not immediately respond to a request for comment.
According to EU rules, if Google fails to address the block's concerns, it could face a fine of up to 10% of its annual revenue. The company's 2023 revenue was more than $307 billion last year, which means it will be fined up to $30.7 billion.
This regulatory dispute is the latest setback in a long-running battle between Google and EU anti-competition authorities.
Earlier this month, Google lost a battle to quash a $2.7 billion fine imposed for blocking rival shopping services, but succeeded in challenging a $1.7 billion fine related to its digital advertising empire.
Google is being targeted under the EU's Digital Markets Act. The sweeping law imposes restrictions on Google's parent company Alphabet and five other firms – Amazon, Apple, TikTok parent ByteDance, Instagram parent Meta and Microsoft – identified by regulators as “gatekeepers” of the internet.
In the month of June, Apple became America's first technology giant App developers will be formally charged under the DMA to prevent them from subtly offering cheaper apps to customers outside of app stores.
Meta was also accused in July For allegedly forcing customers into a restrictive “pay or agree” model for ads on Instagram and Facebook.
Last week, The European Union warns Apple that it may have to pay a fine Unless it agrees to improve the interoperability of its secure iOS software with devices made by rivals, such as smartwatches and headphones.
Google also faces increasing anti-competitive action in the US.
The landmark DOJ antitrust trial targeting Google's alleged monopoly on digital advertising technology used by businesses and online publishers begins Monday with what is expected to be the final week of testimony. The federal government is seeking to forcibly break up Google's advertising empire.
In addition, a federal judge ruled in August that Google runs an illegal monopoly on online search. A second phase of determining potential penalties to rein in Google — including a possible split — is expected to be finished by next summer.
