The European Commission has fined Google €890 million, or about $1 billion, for violating the European Union’s Digital Markets Act.
The Commission issued two separate penalties. It fined Google €460 million for favouring its own services in Search and another €430 million for restricting how app developers direct customers to alternative purchasing options.
Google Favoured Its Own Search Services
The Commission found that Google displayed its own shopping, hotel, transport and sports services more prominently than comparable third-party services.
Google placed some of its services at the top of search results and presented them with enhanced visuals and filters that competitors did not receive.
The DMA requires major technology platforms to apply fair, transparent and non-discriminatory ranking conditions. The Commission said Google’s treatment of its own services broke those rules.
Google must now treat competing services fairly and without discrimination in its search results.
Play Store Rules Restricted Developers
The Commission also found that Google prevented app developers from freely promoting alternative offers to customers.
Under the DMA, developers distributing applications through Google Play must be able to tell users about other purchasing options without charge. These alternatives may include cheaper offers available through websites or competing app stores.
The Commission said Google restricted developers from communicating with users, promoting outside offers and completing contracts through distribution channels of their choice.
It also found that Google’s related fees and the length of time it charged them went beyond what the DMA allows.
Google must allow developers to communicate with customers and promote or complete purchases both inside and outside the Play Store.
Google Given 60 Days to Comply
The Commission ordered Google to end both violations and gave the company 60 days to comply.
Google has already proposed and started testing changes to the way it presents shopping, hotel, flight, advertising and sports content in Search.
The company has also changed some Google Play terms. The Commission described those steps as progress but said it would assess them against the requirements of its latest decision.
The Commission said it remained in constructive discussions with Google, reducing the likelihood of immediate additional penalties.
Google Criticises EU Decision
Google criticised the ruling and said it may challenge the Commission in court.
Google President of Global Affairs Kent Walker said compliance would require the company to remove useful real-time Search features, including pricing and availability information for hotels, flights and restaurants.
He also argued that the required Play Store changes could weaken safety protections and negatively affect European users and businesses.
EU Has Fined Google More Than €10 Billion
The latest penalties are Google’s first under the Digital Markets Act. However, they are its fifth and sixth major European penalties for anti-competitive practices.
The fines bring Google’s total EU competition penalties to about €10.38 billion over nearly two decades.
In September 2025, the Commission fined Google €2.95 billion, or around $3.5 billion, for favouring its own advertising technology services. That decision was issued under traditional EU competition rules rather than the DMA.
The EU classifies Google parent Alphabet, Amazon, Apple, Meta, Microsoft and TikTok owner ByteDance as gatekeepers because they control major digital platforms connecting businesses with users.
US-EU Tensions Increase
The decision could add to tensions between the European Union and the United States over the regulation of American technology companies.
US President Donald Trump has previously threatened trade action in response to European penalties against major American firms.
The US Trade Representative accused the EU of creating uncertainty for American exports and unfairly targeting competitive US companies. However, it did not announce any immediate retaliatory action.
European Commission Executive Vice-President Teresa Ribera defended the decision, saying products should succeed because of their quality rather than their ownership by the company operating the search engine.
She added that consumers should be able to learn about better offers even when the owner of an app store does not receive a share of the purchase.
Alphabet Reports Strong Revenue Growth
The fine came after Alphabet reported second-quarter revenue of $119.8 billion, representing annual growth of 24%.
Google Cloud revenue increased 82% to $24.8 billion, supported by demand for artificial intelligence infrastructure and services.
Despite the strong results, Alphabet shares fell more than 6% as investors focused on the company’s rapidly rising AI spending and negative free cash flow.
The Commission said it calculated the latest fine after considering the seriousness, length and repeated nature of Google’s violations.
Stay Connected with ProPakistani
Get the latest tech news, telecom insights, and product launches wherever you prefer.
Add ProPakistani to Preferred Sources and see more of our stories in Google Search and Top Stories.
