The European Union has imposed fines totalling €890 million (approximately $1 billion) on Google for violating rules aimed at ensuring fair competition in digital markets, marking the first time the company has been sanctioned under the bloc’s Digital Markets Act (DMA).
The European Commission announced on Thursday that Google breached the DMA in two key areas. The first concerns Google Search, where the company was found to have given preferential treatment to its own services, including shopping, hotels and transport, over rival platforms. The second relates to the Google Play Store, where Google was found to have restricted app developers from directing users to cheaper offers available outside its app marketplace.
“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 responsible for tech sovereignty.
She added that the Commission also found Google had limited app developers’ ability to offer customers more affordable alternatives outside the Google Play ecosystem.
The Commission fined Google €460 million for its search-related practices and €430 million for its Play Store restrictions. It said the penalties reflected the seriousness and duration of the company’s non-compliance, while noting that Google has already begun testing and implementing some changes following discussions with regulators.
According to the Commission, Google gives its own services greater visibility by placing them higher in search results and using enhanced visual features and filters that competitors cannot access. Regulators also said the company prevents app developers from promoting offers or concluding contracts with customers through alternative distribution channels, including third-party app stores.
Google has been given 60 days to comply with the Commission’s directives, including allowing developers to communicate and contract directly with users outside the Play Store, or risk additional penalties.
Google criticized the decision, arguing that the DMA is undermining products used by European consumers.
Kent Walker, Google’s President of Global Affairs, said compliance with the law is forcing the company to remove popular search features, including real-time pricing and direct availability for hotels, flights and restaurants, while weakening security protections within Google Play.
The ruling comes during broader tensions between the European Union and the United States over the regulation of major technology companies. US President Donald Trump has previously threatened additional tariffs on European goods in response to what his administration considers unfair treatment of American technology firms.
US Trade Representative Jamieson Greer also criticized the Commission’s action, saying recent enforcement of the DMA undermines constructive dialogue and poses risks to transatlantic trade relations.
Despite the criticism, the European Commission said it will continue engaging with Google to ensure full compliance with both the decision and the broader requirements of the Digital Markets Act.
European Commissioner Teresa Ribera defended the action, saying competition should be based on the quality of products rather than ownership of the platform that delivers them.
“The best products should succeed because they’re better, not because they’re owned by the company running the search engine,” she said, adding that consumers should also be free to access the best offers available, regardless of whether the app store operator benefits financially.
Source: Cable News Network (CNN)
