Good for Italy -- they have no chance of creating a Google, so their best path to tech dollars is a regular cadence of these $100m fines (but not so often that Big Tech exits the Italian market).
If Google leaves the Italian market, Italy could have a chance to create a local Google. Google's scale is huge and they have a lot of products, but a subset of these products, such as tracking, ads, search, emails, and videos, is achievable for a country like Italy in my opinion.
I suspect it's more a problem of network effects than it's a problem of money. Google just has so much data at this point that it's really tough to get marginally enough better search results than Google to get a significant number of people to switch. Personally, I use DDG for ideological reasons.
I hope competition heats up in the ads and search spaces, but I'm not holding my breath, even with significant government funding.
In my time at Google, I also remember being slightly concerned about Cuil. Cuil was started by some ex-Googlers and had some sophisticated machine learning algorithms to find images to attach at the top of most search results pages. They were well-funded and supposedly had a larger corpus than Google. On launch day, Cuil inexplicably attached the image of a porn star with an unrelated name to a journalist's search for his own name. It also had tons other very bizarre choices of images, all inexplicably blamed on scaling issues due to unanticipated demand. Also, at the time that Yahoo shut down its search infrastructure to outsource Bing's search back-end, our internal quality metrics actually showed Yahoo ahead of Bing. I'm sure getting all of that Yahoo traffic to siphon up more behavioral data helped Bing's search results in the long term.