EU Fines Google $1 Billion for Favoring Its Own Services in Landmark Digital Markets Act Case
The European Commission has imposed a €890 million ($1 billion) fine on Google after concluding that the company illegally favored its own services in search results and restricted competition through its Google Play Store, in violation of the Digital Markets Act (DMA). The decision represents Google’s first financial penalty under the EU’s flagship digital competition law and marks a significant step in Brussels’ effort to rein in the market power of major technology platforms.
The Commission divided the penalty into €460 million for Google’s search business and €430 million for Google Play. Regulators found that Google systematically gave preferential treatment to its own services—including shopping, hotels, transport, and sports results—by placing them more prominently in search rankings while reducing the visibility of competing services. According to the Commission, this practice denied rival businesses a fair opportunity to compete on equal terms.
In a separate finding, EU authorities ruled that Google unlawfully restricted app developers from informing users about cheaper purchasing options outside the Google Play Store. The Commission said developers should be free to direct customers to alternative websites or app stores without facing excessive fees or contractual barriers. While Google is permitted to charge developers for acquiring new customers through Google Play, regulators concluded that the company’s steering-related restrictions exceeded what is allowed under the DMA.
The European Commission has ordered Google to end both violations and bring its services into compliance within 60 days. Failure to comply could expose the company to additional periodic penalties of up to 5% of Alphabet’s average daily global turnover until the required changes are implemented. EU officials said the objective is not to punish success but to ensure that dominant digital platforms compete fairly and give consumers genuine choice.
Google has strongly rejected the Commission’s conclusions and confirmed that it intends to appeal the decision. The company argues that the EU’s interpretation of the DMA would require changes that could make Search less useful, reduce user security, and complicate the operation of Google Play. At the same time, Google noted that it has been working with European regulators and has already tested modifications to search result layouts and app store policies in an effort to comply with the new rules.
The ruling adds to Google’s long-running regulatory challenges in Europe. Since 2017, the company has faced multiple antitrust cases involving Google Shopping, Android, AdSense, and digital advertising, with cumulative EU competition penalties now exceeding €10 billion. The latest DMA enforcement is expected to influence how other global technology companies—including Apple, Meta, Amazon, and Microsoft—adapt their products and business practices to comply with Europe’s increasingly stringent digital competition framework.
