The European Union has fined Google €890 million (around $1 billion) after finding that the company violated the Digital Markets Act (DMA). According to the European Commission, Google used its strong position in online search and the Play Store in ways that gave its own services an unfair advantage over competitors. This is one of the first major penalties issued under the EU’s new digital competition rules.
The total fine has been divided into two parts. Google received a €460 million penalty for giving better visibility to its own services, such as Google Shopping, Google Flights, and Google Hotels, in search results. The EU said this made it harder for competing services to reach users on equal terms, reducing fair competition in the digital market.
Google was also fined €430 million over its Play Store policies. Regulators found that the company restricted app developers from directing users to cheaper payment methods or offers outside the Play Store. The EU believes these restrictions limited consumer choice and prevented developers from freely promoting better deals to their customers.
The European Commission said that companies with a dominant position must compete fairly instead of using their platforms to favor their own products. Officials explained that users should be able to discover the best services based on quality rather than because one company controls the platform. The decision is aimed at creating a more competitive digital marketplace across Europe.
Google has strongly disagreed with the ruling and plans to appeal the decision. The company said the changes required by the EU could make its products less useful for users and may reduce important features available in Search and the Play Store. Google also argued that the new rules could negatively affect innovation and the overall user experience.
Despite challenging the decision, Google has already started testing several changes to comply with the Digital Markets Act. The European Commission acknowledged that discussions with the company have been constructive and noted that Google has shown progress in adjusting some of its search and app store practices. However, regulators will continue monitoring whether the company fully follows the required rules.
This latest penalty adds to the long list of antitrust actions taken against Google in Europe over the past several years. Earlier this month, Google also lost its final appeal against a separate €4.1 billion Android antitrust fine. Together, these cases show that the European Union is continuing its efforts to ensure that large technology companies follow competition laws and do not misuse their market power.
The $1 billion fine is considered a major milestone because it is among the first large enforcement actions under the Digital Markets Act. The case sends a clear message that digital platforms must provide fair opportunities to competitors and give consumers more choice. It also highlights the EU’s commitment to keeping online markets open, competitive, and transparent for both businesses and users.
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