BRUSSELS — The European Union has fined Google €890 million (approximately $1 billion) for violating the bloc’s landmark digital competition rules, accusing the technology giant of using its dominant position in online search and the Google Play app store to favor its own services over those of rivals. The decision marks the first financial penalties imposed under the European Union’s Digital Markets Act (DMA).
The European Commission announced Thursday that the fine consists of two separate penalties: €460 million for giving preferential treatment to Google’s own services in search results, and €430 million for restricting Android app developers from directing users to alternative payment options or offers outside the Google Play Store. Regulators said the practices limited consumer choice and placed competing businesses at a disadvantage.
According to the Commission, Google violated the DMA by steering users toward its own products—including shopping, hotel, travel, and other services—through its search engine while making it more difficult for rival companies to compete on equal terms. The Commission also found that Google’s Play Store policies prevented app developers from freely informing customers about cheaper or alternative purchasing options outside Google’s platform.
European Commission Executive Vice-President for Clean, Just and Competitive Transition Teresa Ribera said the decision reinforces the European Union’s commitment to ensuring that digital markets remain open and competitive.
The Commission has ordered Google to bring its services into compliance within 60 days or risk additional financial penalties under the Digital Markets Act. Under the DMA, companies designated as “gatekeepers” can face fines of up to 10% of their global annual revenue for serious violations.
Google rejected the Commission’s findings and announced it intends to appeal the decision. The company argued that the EU’s requirements have already forced changes that reduce the quality of its products and could ultimately harm consumers and businesses across Europe.
In a statement, Google said the ruling reflects demands from competitors rather than consumer interests and warned that further restrictions could limit innovation within its search engine and Android ecosystem.
The latest penalty adds to more than €10 billion in fines the European Union has imposed on Google over the past two decades for various antitrust violations involving its shopping service, Android operating system, online advertising, and search business. Earlier this month, Europe’s highest court upheld a separate €4.1 billion antitrust fine related to Google’s Android practices.
The decision is expected to further heighten tensions between Brussels and major U.S. technology companies as European regulators continue enforcing the Digital Markets Act, legislation designed to curb the market power of the world’s largest digital platforms and promote greater competition across the European Union.