European Union has fined Google €890 million ($1 billion) for allegedly breaching digital competition rules, marking the first major penalty imposed on the technology giant under the bloc’s landmark Digital Markets Act (DMA).
The European Commission, the EU’s executive body, announced the sanction, accusing Google of favouring its own services, including hotels, shopping and transport offerings, over competitors on its search platform.
The Commission said Google had failed to comply with the DMA requirement that digital platforms should provide fair opportunities for competing businesses operating within their ecosystems.
It also accused the company of restricting app developers from offering users cheaper deals and directing customers to alternative channels outside the Google Play Store.
“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 said.
The EU regulator imposed separate fines of €460 million ($524.7 million) and €430 million ($490 million) for the two violations, explaining that the penalties reflected the seriousness and duration of Google’s non-compliance.
According to the Commission, Google’s search engine gives preferential treatment to its own services by placing them more prominently on results pages through enhanced displays, visuals and filters, thereby reducing visibility for rival providers.
The Commission also said Google’s policies prevent app developers from promoting alternative offers or entering direct contracts with customers through other distribution platforms.
The EU has given Google 60 days to implement corrective measures, including allowing app developers to inform users about alternative purchasing options outside the Google Play Store.
Failure to comply could lead to further enforcement actions and additional penalties, the Commission warned.
Reacting to the decision, Google criticised the penalty, arguing that compliance with the DMA had affected some features enjoyed by European users.
“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 company said.
The United States Trade Representative also criticised the EU action, warning that recent enforcement measures under the Digital Markets Act could undermine transatlantic economic relations.
The representative said the measures posed risks to continued cooperation between Europe and the United States on trade issues.
However, the European Commission maintained that its actions were aimed at ensuring fairness in digital markets and protecting consumers and businesses from unfair practices.
The Commission said it would continue engaging with Google to ensure compliance with the Digital Markets Act.
“The best products should succeed because they’re better, not because they’re owned by the company running the search engine,” the Commission said, adding that consumers should have access to the best offers regardless of who owns the digital platform.
The latest penalty forms part of Europe’s broader effort to regulate major technology companies and promote competition within the digital economy.
