European Union regulators are reportedly preparing to put Google on notice that it must make changes to its dominant search engine or face massive fines.
The EU watchdogs are prepping a “formal chargesheet” that is focused on how Google displays links to its competitors within embedded search services like Google Flights or Google Hotels, Bloomberg reported, citing people familiar with the matter.
Antitrust officials could announce its preliminary move by the end of October – though the timeline could be delayed until after an upcoming leadership shakeup at the European Commission, the report said. A final decision in the case is slated to occur by next March.
Google could avoid possible fines by making changes to its business practices to assuage the EU’s concerns. The company’s lawyers have reportedly discussed potential fixes with regulators, such as the addition of an option that would allow users to easily navigate to rival services.
Google did not immediately return a request for comment.
Under the EU’s rules, Google could face fines of up to 10% of its annual revenue if it fails to address the block’s concerns. Given the company’s 2023 revenue of more than $307 billion last year, that would mean a penalty of up to $30.7 billion.
The regulatory spat is the latest blow in a long-running battle between Google and EU antitrust officials.
Earlier this month, Google lost a fight to overturn a $2.7 billion fine for stifling rival shopping services, but succeeded in challenging a separate $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 – that are identified by regulators as “gatekeepers” of the internet.
In June, Apple became the first US tech giant to be formally charged under the DMA for allegedly blocking app developers from easily steering customers to cheaper offers outside of its App Store.
Meta was also hit with charges in July for allegedly forcing customers into a restrictive “pay or consent” model for ads on Instagram and Facebook.
Last week, the EU warned Apple that it could face fines unless it agreed to improve the interoperability of its closely guarded iOS software with devices made by rivals, such as smartwatches and headphones.
Google also faces an escalating antitrust crackdown in the US.
The landmark DOJ antitrust trial targeting Google’s alleged monopoly over digital advertising technology used by businesses and online publishers kicks off what is expected to be its final week of testimony on Monday. The feds are seeking a forced breakup of Google’s ad empire.
Separately, a federal judge ruled in August that Google operates an illegal monopoly over online search. A second phase to determine potential penalties to rein in Google – including a potential breakup – is expected to conclude by next summer.