EU fines Google $1B+ for DMA violations as Trump intervention looms

On Thursday, the European Commission ordered Google to pay over $1 billion in fines for two serious violations of the Digital Markets Act. The first penalty of $522 million stems from Google self-preferencing its own services (shopping, hotels, flights) in search results over third-party competitors. The second fine of $488 million addresses anti-steering practices that charged fees or restricted app developers from directing consumers to cheaper purchase options outside Google Play. The EC gave Google 60 days to make changes or risk even higher daily fines. Google has already started rolling out steering-related changes and testing search adjustments, but President of Global Affairs Kent Walker said the company disagrees with the decision and is considering an appeal.

The fine carries significant geopolitical weight. Twenty-five Republican lawmakers sent a letter urging President Trump to retaliate by launching trade investigations, arguing the EU is using the DMA as a “tool of economic extraction” against American firms. The letter noted that Chinese rivals like Temu and AliExpress are not bound by the same rules. An EU spokesperson defended the bloc's sovereign right to regulate, while expressing hope for diplomatic cooperation. Yelp publicly applauded the fine, claiming it levels the playing field. Google risks further escalating tensions if it appeals, potentially drawing the Trump administration into a transatlantic tech trade war.