The European Union imposed a 890 million euro fine on Google for violating competition rules under the bloc's Digital Markets Act. The penalty marks another significant regulatory action against the tech giant and addresses violations related to both its search engine and app store operations.
The European Commission, the EU's executive arm, determined that Google abused its market power in two distinct ways. First, Google gave priority to its own services such as shopping and hotel deals in search results, treating them more favorably than those of competing companies. Second, Google prevented app developers from directing consumers toward cheaper offers on websites or alternative app stores. The Commission split the fine accordingly, assigning 460 million euros for the search-related breach and 430 million euros for the app store violation.
The regulatory action comes as Google has already begun making changes to address these concerns. The company has started testing modifications to how it displays search results featuring its own services, including shopping and flight options. A senior EU official noted that these changes represent "substantial progress towards compliance" with the Commission's requirements.
Moving forward, Google must treat third-party services appearing in its search results in a "fair and non-discriminatory manner." The company must also allow app developers to make offers outside Google's app store and direct users toward alternative payment options. These measures are intended to create a more level playing field for competitors on Google's platforms.
A senior EU official stated that consumers will benefit directly from the decision, noting that search results will differ in Europe and Google will need to adapt its search engine going forward.
The fine reflects the EU's position as a global leader in technology regulation. The bloc has consistently challenged business practices it views as anticompetitive and has established itself through a series of antitrust actions against major American technology companies. Google has faced multiple penalties from European regulators over the past decade for various competition-related issues, making it one of the most heavily fined companies in EU antitrust history.
The timing of the fine drew attention due to broader trade tensions. The decision was issued just hours before temporary global tariffs against approximately 60 countries were set to expire. However, EU officials stated they had no advance knowledge of how the United States might react to the fine. One official emphasized that the EU had the "sovereign right" to regulate American technology companies within its own jurisdiction and that the timing was not connected to tariff concerns.
Google has the option to appeal the decision and can request interim measures, including a suspension of the penalty, through European courts. Any appeal process could take years to resolve.