EU imposes record $1bn fine on Google for digital antitrust breaches

The European Union has imposed a fine of €890 million (approximately $1 billion) on Google for breaching digital antitrust rules, marking the largest total penalty levied against a single company under the Digital Markets Act (DMA). The European Commission alleges the technology giant violated regulations by steering users of Google Play and its search engine towards its own services and applications, thereby disadvantaging rivals.

This penalty is part of a broader regulatory crackdown on Big Tech by Brussels, which aims to ensure fair competition in the digital market. The fine follows a recent loss by Google in its appeal against a separate $4.5 billion antitrust penalty related to its Android operating system. Competition Commissioner Teresa Ribera emphasised that market success should be driven by product quality rather than corporate ownership, stating that the best products should succeed because they are better, not because they are owned by the company running the search engine.

The European Commission, the bloc’s executive branch, said it was acting in the interest of consumers. “European consumers have a right to be told by app developers where to sign up to the best offers, even when the app store owner does not get a cut,” said Ribera. European Commission spokesperson Thomas Regnier added that businesses have the right to compete fairly and that gatekeepers have the obligation to ensure a level playing field.

The fines represent 0.22 percent of Google’s global turnover. The European Commission warned that additional periodic penalty payments could be levied if Google fails to comply with the new ruling within 60 days. Google’s head of global affairs, Kent Walker, stated that the company would be forced to remove popular real-time search features, such as instant pricing for hotels, flights, and restaurants, and dismantle safety protections on Google Play.

The EU and the US have agreed to address frictions linked to the bloc’s digital rules through talks, although these have not yet begun. Some 25 US lawmakers belonging to Trump’s Republican Party urged the president to use tools against the EU’s digital rules, but the EU appeared sanguine about any potential retaliation. Ribera told reporters that the EU’s duty is to ensure that regulations adopted by sovereign institutions are fully enforced and respected.