The European Commission (EC) has hit Google with a $1 billion fine, sparking a debate over digital regulation that has drawn a warning from the Trump administration. A letter from the US stated that the EU's access to the US market could be limited if it continues with "discriminatory acts, policies, and practices in the digital sector." The EC's spokesperson, Thomas Regnier, asserted the EU's "sovereign right to regulate economic activities on its territory," vowing to enforce rules fairly. Despite the tension, the EU hopes for a diplomatic resolution rather than a clash with the Trump administration.

Google is actively implementing changes to comply with the Digital Markets Act (DMA) to avoid further penalties. The EC confirmed that Google has "rolled out changes related to Google’s steering terms" and is testing modifications to how it displays its own services on Search, including shopping, hotels, and flights, as well as shopping ads. Google also plans to adjust its AI Overviews and AI Mode to meet EC expectations.

Despite cooperating, Google disagrees with the EC's decision. Kent Walker, Google's President of Global Affairs, indicated the company is considering an appeal, arguing the changes degrade its products to satisfy a "small group of self-serving complainants." Yelp has applauded the DMA fine imposed on Google.