The European Union has fined Google €890 million (approximately US$1 billion) for violating competition rules under the bloc’s Digital Markets Act (DMA), marking the first time the tech giant has been penalised under the landmark legislation.
The European Commission announced on Thursday that Google had failed to comply with the DMA by giving preferential treatment to its own services, including hotels, shopping and transport, in Google Search, while also restricting how app developers offer services to customers through Google Play.
European Commissioner for Tech Sovereignty Henna Virkkunen said the Commission found that Google disadvantaged businesses offering similar services by failing to give them equal prominence in search results.
“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,” she said.
The Commission also found that Google prevented app developers from directing customers to cheaper offers outside the Google Play Store.
Google was fined €460 million for favouring its own services in search results and a further €430 million for restrictions imposed through Google Play. The Commission said the penalties reflected the seriousness and duration of the violations, while noting that Google had already begun implementing some changes following discussions with regulators.
According to the Commission, Google places its own services at the top of search results using enhanced visuals and filters, while limiting app developers’ ability to promote offers or conclude contracts with users through alternative distribution channels, including third-party app stores.
Google has been given 60 days to comply with the Commission’s directives, including allowing app developers to enter into contracts with users outside Google Play, or face additional penalties.
Responding to the decision, Google’s President of Global Affairs Kent Walker criticised the ruling, claiming the DMA “continues to break everyday products.”
He argued that complying with the rules would require Google to remove features such as real-time hotel, flight and restaurant pricing from Search and weaken security protections in Google Play.
“This isn’t fair competition; it’s product degradation driven by a small group of self-serving complainants, with European businesses and consumers taking the hit,” Walker said.
The European Commission said it would continue working with Google to ensure compliance with both the ruling and the Digital Markets Act.
European Commissioner Teresa Ribera defended the decision, saying the best products should succeed because of their quality rather than the market power of the company operating the search engine.
She also said European consumers have the right to be informed of the best offers available from app developers, even when those transactions take place outside the app store owner’s platform.