EU Fines Google €890 Million Under Digital Markets Act

The European Commission has imposed €890 million (around $1 billion) in fines on Google after concluding that the company breached the Digital Markets Act (DMA) by favouring its own services in search results and restricting app developers on the Google Play Store.

In a statement issued on Thursday, the Commission said it had fined Google €460 million for giving preferential treatment to its own services—including shopping, hotels, transport and sports—in search rankings, while imposing a second fine of €430 million over restrictions preventing app developers from directing users to cheaper purchasing options outside the Google Play Store.

The Commission said the DMA requires designated “gatekeepers” to refrain from favouring their own services over competitors and to allow app developers to inform users about alternative purchasing channels without imposing unjustified fees or restrictions.

According to the Commission, Google displayed its own services at the top of search results using visual features and filtering tools unavailable to competing platforms. It also concluded that the fees charged for directing users outside the app store exceeded what is permitted under the legislation.

60-Day Compliance Deadline

The Commission has given Google 60 days to comply with the ruling, warning that failure to do so could result in additional penalties of up to 5% of the company’s total annual worldwide turnover.

It noted that Google has already begun testing changes to the presentation of its services in search results and has introduced modifications to Google Play policies, describing those steps as progress towards compliance.

Kent Walker, President of Global Affairs at Alphabet, criticised the decision, arguing that enforcement of the Digital Markets Act “harms products that Europeans use every day.”

He said Google had already removed several search features, including real-time price comparisons and direct hotel, flight and restaurant availability, while also reducing some security protections within Google Play. The company is reviewing the decision and considering an appeal.

European Competition Commissioner Teresa Ribera defended the ruling, saying that “the best products should succeed because they are the best, not because they belong to the company that operates the search engine.”

Technology Commissioner Henna Virkkunen said the measures are intended to ensure “fair competition and a level playing field” in digital markets.

The penalties are the first imposed on Google under the Digital Markets Act, but the fifth and sixth antitrust fines the company has faced in the European Union.

Alphabet shares fell about 4% in pre-market trading, although analysts said the decline was driven primarily by investor concerns over the company’s increased spending on artificial intelligence rather than the EU fines.

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