The European Commission has issued a $1 billion fine against Google for violating the Digital Markets Act, a regulatory framework designed to ensure fair competition among major technology platforms. The penalty is split into two parts: €460 million for anti-competitive practices in Google Search and €430 million for restrictive policies within the Google Play Store.
Regulators determined that Google consistently prioritized its own services—including shopping, hotels, and transportation—by placing them above third-party competitors in search rankings. The European Commission noted that Google utilized enhanced visuals and prominent placement to steer users toward its own offerings, effectively limiting the visibility of rival providers. Under the Digital Markets Act, gatekeepers are required to treat third-party services in a non-discriminatory manner.
The second violation concerns the Google Play Store, where the company allegedly prevented app developers from informing users about alternative, lower-cost purchase options outside of Google's ecosystem. The Commission found that Google restricted developers from directing customers to external websites and imposed fees that made it financially difficult for businesses to offer competitive pricing. The ruling mandates that Google must now allow developers to freely promote their own payment options.
Google has been given 60 days to comply with the European Commission's requirements or face additional periodic penalty payments of up to 5% of its total global revenue. While the Commission acknowledged that Google has engaged in constructive dialogue and is testing changes to search results and AI Overviews, the company has expressed strong dissatisfaction with the enforcement.
Kent Walker, Google's president of global affairs, stated that the company is evaluating the possibility of an appeal. Walker argued that the regulatory requirements force the company to degrade product quality by removing real-time search features and safety protections, characterizing the move as harmful to both European businesses and consumers. Trade associations, including CCIA Europe, have similarly suggested that the enforcement could negatively impact the quality of services available to European users.
This decision follows a series of antitrust actions against the company in the region. Earlier in July, a European court upheld a separate $4.1 billion fine related to requirements that phone manufacturers pre-install Google Search and Chrome. The current penalty highlights the ongoing tension between US technology corporations and European regulators regarding the implementation of the Digital Markets Act.