The European Union has imposed a €890 million ($1 billion) fine on Google for violating digital market regulations designed to ensure fair competition. The penalties, announced on Thursday, target the company’s use of its dominant position as both a search engine and app store operator to favor its own services over those of competitors.
The fine is split into two parts: €460 million for unfairly elevating Google’s own services in search results related to shopping, hotels, transport, and sports, and €430 million for restricting app developers from directing users to cheaper offers outside Google’s Play Store. The European Commission, the EU’s executive branch, said Google breached the Digital Markets Act (DMA), a regulatory framework aimed at preventing large tech companies from abusing their gatekeeper status in digital markets.
According to the commission, Google displayed its services more prominently than rivals, often placing them at the top of search results or providing enhanced visual elements not afforded to other providers. Additionally, Google limited app developers’ ability to promote alternative offers or direct consumers to other app stores, restricting user choice and competition. Failure to comply with the rulings within 60 days risks penalty payments of up to 5% of Google’s global turnover.
European officials emphasized that the sanctions aim to foster a level playing field where the best products succeed on merit rather than platform ownership. Teresa Ribera, the commission’s executive vice president for transition policies, stated consumers have the right to be informed about the best available offers, irrespective of the app store’s financial interests. Henna Virkkunen, vice president for tech sovereignty and democracy, described the fines as a clear message that the EU will actively protect fair business and innovation opportunities.
Google President of Global Affairs Kent Walker criticized the ruling, describing it as “product degradation driven by a small group of self-serving complainants” that would harm European consumers and businesses. He argued the DMA forces Google to remove features Europeans value, such as instant pricing and direct availability information for hotels, flights, and restaurants, and undermines security protections in Google Play.
The commission noted that Google had already begun testing changes to how its services are presented in search results, representing progress toward compliance. The investigation began nearly two years ago, with the company informed of preliminary findings in March of the previous year.
The fine is part of a broader EU effort to regulate major technology firms, often referred to as "gatekeepers," including Amazon, Apple, Meta, Microsoft, and ByteDance. This regulatory push has drawn criticism from U.S. officials and politicians, who consider the actions unfairly targeting American companies. A group of 25 U.S. lawmakers recently urged President Donald Trump to take action against what they described as the EU’s “economic extraction and regulatory coercion” of U.S. firms. The European Commission has rejected these claims, affirming its sovereign right to enforce competition laws within its territory.
Alphabet, Google’s parent company, reported revenues exceeding $400 billion in 2025, underscoring the scale of the corporate giant subject to these unprecedented fines. While Google can appeal the decision and request suspension of the measures, the EU has demonstrated an ongoing commitment to enforcing its digital market regulations.