The European Commission has fined Google €890 million (approximately $1 billion) after concluding that the company violated key provisions of the European Union’s Digital Markets Act (DMA). The penalties mark the first time Google has been sanctioned under the landmark legislation, which was introduced to limit the market power of the largest digital platforms and ensure fair competition across the EU.
The Commission issued two separate decisions covering Google’s Search service and Google Play Store. Google received a €460 million fine for favoring its own specialized services, including shopping, hotel booking, flight comparison, and other Google products, over competing services in search results. According to regulators, Google’s search engine systematically gave preferential treatment to its own offerings while reducing the visibility of rival comparison websites, preventing competitors from competing on equal terms.
A second fine of €430 million relates to Google Play. The Commission found that Google restricted app developers from freely informing users about alternative payment methods or directing them to offers available outside the Play Store. Regulators concluded that these restrictions limited developers’ ability to communicate lower prices or alternative purchasing options, reducing consumer choice and reinforcing Google’s control over app distribution and in-app purchases.
The Commission has ordered Google to bring both services into compliance with the Digital Markets Act within 60 days. Failure to implement satisfactory changes could expose the company to additional financial penalties or periodic fines under the DMA’s enforcement framework. The regulation allows the Commission to impose significant sanctions on companies designated as “gatekeepers” if they fail to comply with their legal obligations.
Google criticized the Commission’s decisions and announced that it intends to appeal. The company argued that the required changes force it to redesign products in ways that could reduce the quality of search results, make it harder for users to find relevant information, and negatively affect European businesses that rely on Google’s services. Google also stated that it has been working with regulators for months, testing various modifications to Search and Google Play in an effort to satisfy DMA requirements.
European officials acknowledged that Google has engaged in ongoing discussions and has experimented with multiple compliance proposals. However, the Commission concluded that the changes implemented so far do not adequately address the competitive concerns identified during its investigation. Officials said the company continues to provide preferential treatment to its own services in Search and maintains restrictions that prevent app developers from communicating freely with customers about alternative purchasing options.
The Digital Markets Act, which became fully applicable to designated gatekeepers in 2024, establishes rules intended to prevent dominant online platforms from abusing their market position. Among other obligations, the law prohibits self-preferencing in search rankings and requires platform operators to allow business users greater freedom to communicate with customers and offer competing services outside the platform.