Google may face EU penalty over search bias, sources say

Google is expected to face a fine from EU antitrust regulators next year for not fully complying with rules that prohibit favoring its own services in search results, according to sources familiar with the matter.

The European Commission charged Google in March with giving preferential treatment to its own offerings, including Google Shopping, Hotels, and Flights, over rival services.

Since then, Google has proposed several changes to its search results, but these have not met the requirements of the Digital Markets Act, which bars large tech firms from promoting their own products and services.

Fines for violations of the Digital Markets Act can reach up to 10% of a company’s global annual revenue.

This case is separate from another EU investigation into Google’s app store, Google Play, which could also result in a fine next year.

Both the European Commission and Google declined to comment on the ongoing cases.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

DMA enforcement needs concrete fixes beyond search interface tweaks

People familiar with the matter say Google’s changes since March 2025, including October updates, still fall short of DMA compliance and they expect a fine next year 1.
Article 6(5) bars gatekeepers (very large platforms designated under the law) from boosting their own services in ranking, then sets transparent and non-discriminatory ranking terms 2.
DMA violations can carry penalties up to 10% of global annual turnover 1.
Google says further changes would prioritize the commercial interests of a small set of intermediaries (such as online comparison-shopping or booking platforms) over European businesses that want to sell directly to customers 1.

DMA-driven steering and billing changes reshape Play Store economics

Google revised its External Offers Program (a Google Play option that lets developers link users to offers outside the Play Store and use their own payment providers) after the Commission’s March 2025 non-compliance concerns 3.
The update cuts the acquisition fee to 3% for the first six months after installation, then sets tiered service fees plus fixed per-install charges that range from €0.10 to €0.95 by country group and service tier 3.
Developers can steer users outside Play to pay with their providers, which can shift where transaction economics accrue 3.
EU-focused app developers need to weigh Google’s infrastructure plus discovery benefits against building independent payment or distribution channels. Tier 2 adds curated placements in the store that boost visibility across discovery, recommendation and editorial surfaces 4.