According to insiders familiar with the matter, Alphabet’s Google risks incurring substantial fines early next year if it fails to align its app store operations with EU regulations. This development could further strain transatlantic relations, as the U.S. has repeatedly expressed concerns that EU laws disproportionately target American tech giants.

Since March of this year, the Google Play app store has been under intense scrutiny by EU regulators. Despite implementing adjustments in August, the platform still does not fully comply with the required standards. Notably, the EU has taken Apple’s App Store reforms as a benchmark for compliance. Following a fine imposed in June, Apple undertook corrective measures and is now anticipated to meet the criteria set forth in the Digital Markets Act (DMA).

Google, however, retains the opportunity to submit a rectification plan. A decision regarding potential fines is expected to be made as early as the first quarter of next year. A spokesperson for Google has cautioned that further modifications could jeopardize the security of Android and Play users. Under the DMA, companies found to be non-compliant may face fines up to 10% of their global annual revenue.

In addition to the app store issue, the EU has accused Google of giving preferential treatment to its own products in search services. Furthermore, investigations are ongoing into Google’s practices concerning artificial intelligence and spam handling.