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The European Commission has fined Google €890 million (about $1.01 billion) for violating the European Union's Digital Markets Act (DMA), penalising the company over its search and app store practices while acknowledging progress in its efforts to comply with the landmark regulation.
The penalties comprise a €460 million fine for favouring Google's own services-including shopping, hotels, transport and sports-in search results, and a €430 million fine for restricting app developers from directing users to cheaper offers outside the Google Play Store.
The fines are Google's first under the DMA and add to more than €10 billion in antitrust penalties imposed on the company by the European Commission over nearly two decades.
The Commission said Google now has 60 days to comply with its orders, requiring it to treat competing services fairly in search results and allow app developers to steer users to alternative purchasing options outside Google Play.
"Our duty and obligation is to comply with the laws, that our laws are fully respected," European Commission Executive Vice-President Teresa Ribera said.
EU technology chief Henna Virkkunen said the objective of the DMA is to ensure "a fair and level playing field" for digital markets.
Google criticised the decision and indicated it could challenge the ruling in court.
"To comply, we are having to strip away real-time Search features Europeans love... and dismantle safety protections on Google Play," Kent Walker, Google's President of Global Affairs, said in a statement. He argued that the changes would degrade products rather than promote fair competition.
Despite the fines, the Commission said Google has made "substantial progress" toward complying with the DMA by testing changes to how it displays its own services in Search, including shopping, hotels, flights and sports content. Regulators also cited positive progress in Google's proposed changes to Google Play policies, suggesting additional daily penalties for non-compliance are unlikely at this stage.
The Commission said discussions with Google will continue, including on whether the principles of the decision should apply to the company's AI-powered Search features, such as AI Overviews and AI Mode.
The ruling comes amid growing transatlantic tensions over Europe's regulation of large technology companies. The Trump administration has criticised EU actions against U.S. firms, with U.S. Trade Representative Jamieson Greer arguing that the bloc continues to target America's most competitive technology companies.
The Google decision follows similar DMA enforcement actions against Apple and Meta, underscoring the EU's continued push to curb the market power of major digital platforms and open its digital ecosystem to greater competition.
The penalties comprise a €460 million fine for favouring Google's own services-including shopping, hotels, transport and sports-in search results, and a €430 million fine for restricting app developers from directing users to cheaper offers outside the Google Play Store.
The fines are Google's first under the DMA and add to more than €10 billion in antitrust penalties imposed on the company by the European Commission over nearly two decades.
The Commission said Google now has 60 days to comply with its orders, requiring it to treat competing services fairly in search results and allow app developers to steer users to alternative purchasing options outside Google Play.
"Our duty and obligation is to comply with the laws, that our laws are fully respected," European Commission Executive Vice-President Teresa Ribera said.
EU technology chief Henna Virkkunen said the objective of the DMA is to ensure "a fair and level playing field" for digital markets.
Google criticised the decision and indicated it could challenge the ruling in court.
"To comply, we are having to strip away real-time Search features Europeans love... and dismantle safety protections on Google Play," Kent Walker, Google's President of Global Affairs, said in a statement. He argued that the changes would degrade products rather than promote fair competition.
Despite the fines, the Commission said Google has made "substantial progress" toward complying with the DMA by testing changes to how it displays its own services in Search, including shopping, hotels, flights and sports content. Regulators also cited positive progress in Google's proposed changes to Google Play policies, suggesting additional daily penalties for non-compliance are unlikely at this stage.
The Commission said discussions with Google will continue, including on whether the principles of the decision should apply to the company's AI-powered Search features, such as AI Overviews and AI Mode.
The ruling comes amid growing transatlantic tensions over Europe's regulation of large technology companies. The Trump administration has criticised EU actions against U.S. firms, with U.S. Trade Representative Jamieson Greer arguing that the bloc continues to target America's most competitive technology companies.
The Google decision follows similar DMA enforcement actions against Apple and Meta, underscoring the EU's continued push to curb the market power of major digital platforms and open its digital ecosystem to greater competition.
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