EU fines Google €890 million over Digital Markets Act breaches

The European Commission has fined Google a total of €890 million (approximately US$1.03 billion) for two breaches of the European Union's Digital Markets Act (DMA), finding that the technology company gave preferential treatment to its own services on Google Search and restricted businesses from directing users to alternative purchasing channels on Google Play.

The Commission announced two separate penalties on Thursday, imposing a €460 million (about US$532 million) fine over Google's alleged self-preferencing practices in search results and a €430 million (about US$498 million) fine over its restrictions on app developers' ability to promote alternative offers outside the Google Play ecosystem.

The EU executive body also ordered Google to take measures to end the violations and comply with the DMA within 60 days. Failure to comply could result in periodic penalty payments of up to 5 per cent of Google's total worldwide turnover.

Google Search accused of favouring its own services

Under the Digital Markets Act, companies designated as "gatekeepers" are prohibited from giving their own products and services more favourable treatment than competing third-party services in rankings and search results.

The European Commission found that Google had breached this obligation by giving preferential treatment to its own services, including shopping, hotels, transport and sports-related results, over similar services offered by third-party companies.

According to the Commission, Google displayed its own services more prominently on search result pages, including positioning them at the top of results or using enhanced visual features and filters.

The Commission said third-party services did not receive equivalent treatment or visibility.

"The best products should succeed because they're better, not because they're owned by the company running the search engine," Teresa Ribera, the European Commission's Executive Vice-President for Clean, Just and Competitive Transition, said.

She added that European consumers had the right to receive information from app developers about alternative purchasing options, including offers where app store operators do not receive a commission.

Google Play restrictions criticised

The second penalty relates to Google's rules for app developers distributing applications through the Google Play Store.

Under the DMA, app developers must be allowed to inform customers about alternative, often cheaper, offers and direct them to other purchasing channels, including their own websites or alternative app stores.

The Commission found that Google restricted developers from freely communicating promotional offers and completing transactions through channels of their choice.

The EU said Google could charge a fee for facilitating the initial acquisition of a new customer through Google Play, but concluded that the company's steering-related fees and the length of time those fees applied went beyond what was allowed under the DMA.

The Commission ordered Google to allow app developers using Google Play to communicate, promote offers and conclude contracts with users both within and outside the Play Store.

Google proposes changes

The European Commission said Google had engaged in discussions with regulators and had proposed several changes aimed at complying with the DMA.

The Commission noted that Google had started testing changes to the way it displays its own services on Google Search, including free services related to shopping, hotels and flights.

It described the changes as "substantial progress" towards compliance but said it would continue monitoring their implementation.

The Commission also said Google had proposed changes relating to shopping advertisements and content-related services, including sports, and that these proposals were still being assessed.

The EU also acknowledged Google's proposals regarding how it plans to apply DMA principles to its artificial intelligence features, including AI Overviews and AI Mode, with discussions continuing.

Regarding Google Play, the Commission said changes introduced by Google to its steering terms represented "good progress" towards compliance but would also be reviewed as part of the enforcement process.

EU increases digital regulation enforcement

The fines follow investigations launched by the European Commission in March 2024 into Google's compliance with the DMA.

Google Search was designated as a core platform service operated by a gatekeeper under the DMA in September 2023.

In March 2025, the Commission informed Google of its preliminary view that the company had breached the legislation. Google was given the opportunity to review investigation documents and respond to the findings before the final decisions were adopted.

The Commission said its decisions followed a detailed investigation, including feedback from market participants and discussions with Google.

Henna Virkkunen, the Commission's Executive Vice-President for Tech Sovereignty, Security and Democracy, said the decisions demonstrated the EU's commitment to enforcing rules designed to protect competition and innovation.

"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.

"We also found that Google has restricted app developers from offering cheaper offers to customers in the Google Play app store."

She said Google must end the non-compliance and avoid repeating the practices in the future.

Google may appeal decision

The European Commission said the level of the fines took into account the seriousness, duration and recurrence of the breaches.

Google has the option to appeal the decisions.

The company must comply with the Commission's orders within 60 days or face additional financial penalties.