The European Union has imposed €890 million ($1 billion) in fines on Google for violating the Digital Markets Act (DMA). The decision marks one of the bloc’s biggest enforcement actions against a single technology company and could increase trade tensions with the United States.
The European Commission said Google gave unfair preference to its own services in search results and restricted app developers from directing users to alternative offers outside the Google Play Store.
Google Penalised Over Search and Play Store Practices
The Commission issued the first fine of €460 million after finding that Google promoted its own services, including Google Flights and Google Hotels, ahead of competing platforms in search results.
Regulators said the practice reduced competition and limited visibility for rival businesses.
The second penalty of €430 million relates to Google Play policies. According to the Commission, Google prevented app developers from informing users about offers available outside its app marketplace without additional charges.
EU Technology Commissioner Henna Virkkunen said the ruling aims to strengthen competition and encourage innovation across the digital market.
“After this decision, we want to make sure that there is more competition and also other companies are able to innovate.”
Officials added that Google continued favouring its own services, while the second investigation covered the period from March 2024 to December 2025.
Google Rejects EU Findings
Google strongly criticised the decision and argued that the EU’s requirements would weaken its products.
Kent Walker, Google’s President of Global Affairs, said the company was being forced to remove features that users value.
“Regulation should improve products, not make them worse.”
He also said the rules would force Google to remove real-time Search features, including hotel, restaurant and flight information, while reducing safety protections within Google Play.
“This isn’t fair competition.”
Digital Markets Act Targets Big Tech
The Digital Markets Act came into force in 2024 to prevent large technology companies from abusing their market power.
The law allows the European Commission to impose fines of up to 10 percent of a company’s global annual revenue for serious violations.
Officials said Google’s latest penalties equal approximately 0.22 percent of the company’s global turnover.
The Commission also warned that Google must comply with the ruling within 60 days. Otherwise, it could face additional financial penalties.
EU Competition Commissioner Teresa Ribera defended the action, saying companies should succeed because of product quality rather than market dominance.
“The best products should succeed because they’re better, not because they’re owned by the company running the search engine.”
Decision May Increase EU-US Trade Tensions
The ruling comes shortly before the first anniversary of a trade agreement between the European Union and the United States that eased tariff disputes.
US President Donald Trump’s administration has previously criticised the EU for targeting American technology companies. Several Republican lawmakers have also urged Washington to respond to Europe’s digital regulations through trade measures.
However, EU officials insisted they would continue enforcing their laws regardless of political pressure.
Virkkunen said the European Union remains fully committed to applying its digital competition rules fairly.
The latest decision adds to Google’s long history of regulatory action in Europe. Between 2017 and 2019, the company received €8.2 billion in EU antitrust fines. Regulators also imposed another €2.95 billion penalty in a separate competition case last year.
