The European Union has fined Google €890 million ($1 billion) for breaching rules designed to promote fair competition in digital services, marking the first time the tech giant has been sanctioned under the bloc’s landmark Digital Markets Act (DMA).
The penalties underscore the European Union’s determination to curb the market dominance of Big Tech companies, despite US President Donald Trump’s threat to impose “substantial additional tariffs” on European goods in response to the bloc’s digital regulations.
Announcing the decision on Thursday, the European Commission, the EU’s executive arm, said Google violated the DMA by giving preferential treatment to its own services, including hotel, shopping and transport listings, in Google Search while disadvantaging rival platforms.
The Commission also found that the company restricted app developers from directing customers to cheaper offers outside the Google Play Store, limiting competition and consumer choice.
“We found that Google harms businesses offering similar services, such as shopping or sports, by not granting them the same level of prominence on Google Search,” said Henna Virkkunen, the European Commissioner for Tech Sovereignty.
“We also found that Google has restricted app developers from offering cheaper offers to customers in the Google Play app store,” she added.
For the two separate violations, the Commission imposed fines of €460 million ($524.7 million) and €430 million ($490 million) respectively.
According to the Commission, the penalties reflected the “gravity and duration” of Google’s non-compliance, although it acknowledged that the company had already begun testing and implementing changes following what it described as a constructive dialogue with regulators.
The Commission said Google unfairly prioritised its own services by placing them more prominently in search results and using enhanced visual displays and filters that gave them an advantage over competing platforms.
It further accused the company of preventing app developers from freely promoting alternative offers or entering into contracts with customers through third-party app stores and other distribution channels.
The EU has given Google 60 days to comply with its directives or face additional sanctions, including measures requiring it to allow app developers to contract directly with users outside the Google Play ecosystem.
The European Commission said it would continue engaging with Google to ensure full compliance with both its latest decision and the broader requirements of the Digital Markets Act.
Responding to the decision, Google criticised the Commission’s ruling, arguing that the DMA was undermining the quality of its products.
“To comply, we are having to strip away real-time Search features Europeans love – like instant pricing and direct availability for hotels, flights and restaurants – and dismantle safety protections on Google Play,” said Kent Walker, Google’s President of Global Affairs.
“This isn’t fair competition; it’s product degradation driven by a small group of self-serving complainants, with European businesses and consumers taking the hit,” he added.