The European Union has fined Google €890 million ($1 billion) for breaching rules designed to promote competition in digital services, marking the first time the company has been penalized under the bloc’s landmark Digital Markets Act (DMA).
The fines highlight Europe’s resolve to rein in the power of Big Tech, despite US President Donald Trump threatening to respond with “substantial additional tariffs” on European goods.
The European Commission, the EU’s executive arm, stated that Google failed to comply with the DMA by promoting its own services—including for hotels, shopping, and transport—on Google Search over those of competitors, as well as restricting how app developers sell services to customers.
“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. We also found that Google has restricted app developers from offering cheaper offers to customers in the Google Play app store.”
The Commission fined the company €460 million ($524.7 million) and €430 million ($490 million) respectively for the two separate infractions. The fines took into account the gravity and duration of non-compliance, although it was noted that Google had already begun testing and rolling out some changes following a constructive dialogue.
According to the Commission, Google displays its own services more prominently than rivals, including by placing them at the top of the search results page and using enhanced visuals and filters. Google also prevents app developers from promoting offers and entering into contracts with customers in alternative distribution channels, including third-party app stores.
Google has 60 days to implement measures directed by the Commission—including allowing app developers to enter into contracts with users outside the Google Play app store—or face further penalties.
Google hit back at the decision, claiming the DMA continues to break everyday 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.”
The US Trade Representative also criticized the penalty, stating that recent actions under the Digital Markets Act undermine constructive dialogue and pose a real risk to the continuation of transatlantic stability regarding trade.
The Commission affirmed that it continues to engage with Google to ensure compliance with its decisions and the DMA more generally.
“The best products should succeed because they’re better, not because they’re owned by the company running the search engine. And European consumers have a right to be told by app developers where to sign up to the best offers, even when the app store owner does not get a cut.”