European Commission Fines Google €890 Million for Violating Digital Markets Act
The European Commission has imposed a €890 million ($1 billion) fine on Google after concluding that the technology giant breached key provisions of the Digital Markets Act (DMA) by favoring its own services in Google Search and restricting competition within the Google Play Store. The decision marks Google’s first financial penalty under the EU’s landmark digital competition law, which is designed to curb the market power of major online platforms designated as “gatekeepers.”
The total penalty comprises €460 million for Google’s search business and €430 million for its Google Play practices. According to the Commission, Google unlawfully gave preferential placement to its own shopping, hotel, transport, and sports services in search results, while offering less visibility to competing platforms. Regulators said this self-preferencing violated the DMA’s requirement that gatekeepers treat their own services and those of rivals on fair and non-discriminatory terms.
In a separate finding, the Commission ruled that Google unlawfully restricted app developers from informing users about alternative purchasing options outside the Play Store. The EU said developers should be free to direct customers to cheaper offers on their own websites or third-party app stores without facing excessive fees or contractual limitations. While Google is permitted to charge for helping developers acquire new users through Google Play, regulators concluded that the company’s steering-related fees and restrictions exceeded what is allowed under the DMA.
The Commission has ordered Google to end both infringements and bring its services into full compliance. The company has 60 days to implement effective remedies or risk additional periodic penalties that could reach 5% of Alphabet’s average daily worldwide turnover for continued non-compliance. EU Competition Commissioner Teresa Ribera said the decision aims to ensure that digital markets remain open, competitive, and fair for businesses and consumers alike.
Google strongly rejected the Commission’s findings and confirmed it intends to appeal. The company argued that the Commission’s interpretation of the DMA would force changes that reduce the quality and security of its products, make Search less useful for users, and limit the ability of developers to benefit from Google Play’s ecosystem. Google also noted that it has already been testing modifications to its search results and app store policies as part of ongoing discussions with European regulators.
The latest ruling adds to Google’s long-running antitrust challenges in Europe. Since 2017, the company has faced multiple competition cases involving Google Shopping, Android, AdSense, and digital advertising, with cumulative EU penalties now exceeding €10 billion. The decision is also expected to intensify transatlantic tensions, as U.S. officials have repeatedly criticized EU enforcement actions against major American technology firms. European authorities, however, maintain that the DMA applies equally to all designated gatekeepers and is intended solely to preserve fair competition in digital markets.
