Alphabet’s Google has been fined €890 million ($1 billion) by the European Commission for violating the European Union’s Digital Markets Act (DMA). The penalties target Google’s search and app store practices aimed at limiting competition.
Despite the fines, EU regulators said Google has made constructive progress toward complying with the landmark legislation. Consequently, the company may avoid additional financial penalties if it continues implementing the required changes.
EU Cites Search and App Store Violations
The Commission imposed a €460 million fine for favoring Google’s own services in search results. The decision covers shopping, hotels, transport, and sports-related searches.
Meanwhile, a second €430 million fine targeted restrictions within Google Play. Regulators said the company prevented app developers from directing users to cheaper offers outside its app store.
Google criticized the ruling and said it could challenge the Commission’s decision in court. The company argued that the required changes could reduce product quality for European users.
Regulators See Progress on Compliance
EU officials said Google has begun testing changes to its search services and shopping features. They also welcomed proposed updates to Google Play’s policies, describing them as constructive progress toward compliance.
Furthermore, the Commission will continue discussions over Google’s AI-powered search features, including AI Overviews and AI Mode. Officials said they would assess the changes before deciding on any further action.
