• The European Commission is preparing to levy a second significant fine against Google for alleged breaches of the Digital Markets Act (DMA), sources say.
  • The decision's timing is being carefully managed amid heightened US-EU trade tensions and internal criticism of the DMA's enforcement.
  • This would mark the first time a tech giant is fined twice under the new rules, signaling a more aggressive regulatory posture.

A Second Blow Under New Rules

Alphabet Inc.'s Google is set to be hit with another substantial fine from European Union regulators in the coming months, according to people familiar with the matter. This would be the second penalty the search giant faces under the bloc's landmark Digital Markets Act, following an initial finding of non-compliance earlier this year.

The European Commission has been building its case but is not rushing the final decision, the sources indicated. Officials are wary of escalating transatlantic trade friction, particularly with the potential for retaliatory measures from the United States. The timing is also influenced by internal debates over the DMA's implementation, which has drawn criticism from some industry segments for being overly punitive.

Navigating a Political Minefield

"There is a conscious effort to avoid appearing reactionary," said one person briefed on the discussions, who asked not to be identified because the deliberations are private. "The goal is a measured enforcement that withstands legal scrutiny without unnecessarily inflaming trade relations."

The pending fine underscores the EU's determination to strictly enforce the DMA, which aims to curb the power of so-called "gatekeeper" platforms. Google, along with other tech behemoths like Apple and Meta, was designated as a gatekeeper last year, subjecting it to a strict set of dos and don'ts designed to foster competition.

A spokesperson for the European Commission declined to comment. Google did not immediately respond to a request for comment. The company has previously stated it is complying with the DMA and continues to work constructively with regulators.

An Escalating Enforcement Trend

This anticipated action represents a significant escalation. While the first fine addressed specific DMA breaches related to self-preferencing and data practices, the second is expected to target different aspects of Google's core business operations. The exact amount of the fine remains under discussion but is expected to run into the billions of euros, reflecting the seriousness of the alleged infringements.

The looming penalty arrives as US-EU relations face strain over trade and industrial policy. Any major action against a leading US company is now viewed through a geopolitical lens, complicating the Commission's calculus. However, with the DMA being a centerpiece of the EU's digital strategy, officials feel compelled to demonstrate its teeth, the sources said.