EU fines Google $1 billion for DMA breaches over search and app store practices

The European Commission has levied a €890 million ($1 billion) fine on Google for breaching the Digital Markets Act, ruling that the search giant abused its position as a market gatekeeper. Regulators determined that the company systematically boosted its own shopping, travel, and gaming services in search results while demoting competing third-party offerings.

In addition to search ranking violations, the Commission found that Google prevented developers on the Google Play store from informing users about alternative payment options. This practice restricted competition and allowed Google to maintain higher transaction fees. The company has been ordered to comply with the decision within 60 days, failing which it faces daily penalties of up to 5 percent of its global turnover.

European Commission competition policy vice-president Teresa Ribera stated that the ruling upholds the DMA’s commitment to protecting fairness and innovation for European citizens. "The best products should succeed because they're better, not because they're owned by the company running the search engine," Ribera said, emphasising that gatekeepers must apply transparent and non-discriminatory conditions to rankings.

Google’s general counsel, Kent Walker, criticised the ruling, describing it as "product degradation." In a statement to The New York Times, Walker argued that regulation should improve products rather than make them worse, asserting that the decision would ultimately harm European users. The fine represents less than one percent of Google’s recently announced quarterly profit of $112.1 billion.

The timing of the announcement has drawn attention amid anticipated trade tensions. European officials explicitly denied that the penalty was linked to news that the Trump administration is expected to introduce new tariffs on European goods. However, the move is expected to stoke friction, with US lawmakers urging decisive action against EU regulation of American tech firms.

This penalty follows a series of significant regulatory setbacks for the company. Earlier this month, Google lost its final appeal against a €4.7 billion fine regarding its Android operating system practices. It also lost its final appeal in 2024 over a €2.8 billion fine for its shopping search monopoly. In the United States, a 2024 US Department of Justice ruling declared Google a monopolist, ordering the company to hand over search data to rivals.