The European Commission has fined Google €890 million for breaching the European Union's Digital Markets Act, accusing the company of favouring its own services in search results and restricting app developers from directing users to cheaper alternatives outside Google Play.
The penalties, announced on Thursday, include a €460 million fine over Google's search business and a further €430 million for practices linked to its Android app store.
The Commission said Google breached the Digital Markets Act by giving preferential treatment to its own comparison shopping, hotel, transport and sports services in Google Search instead of applying equal conditions to competing platforms.
It also found that Google prevented app developers from freely informing customers about alternative purchasing options, including offers available through websites or rival app stores, where prices are often lower.
The Commission ordered Google to end both practices.
Under the ruling, the company must treat third-party services appearing in search results in a fair and non-discriminatory manner and allow developers to steer users towards alternative purchasing channels.
EU officials said consumers would benefit from changes to how search results are presented across Europe.
The Commission added that Google has already started testing changes to its search results and Google Play policies, describing those efforts as substantial progress towards compliance. Officials said discussions with the company remain constructive, reducing the likelihood of additional financial penalties if those changes satisfy regulatory requirements.
According to Reuters, the Commission is also examining whether the principles established in Thursday's decision should apply to Google's AI-generated search features, including AI Overviews and AI Mode.
The Digital Markets Act, which came into force to curb the market power of the largest online platforms, imposes strict obligations on designated "gatekeepers" operating digital services across the European Union.
Speaking after the decision, European Commission Executive Vice-President for Clean, Just and Competitive Transition Teresa Ribera said the bloc had a duty to ensure its laws were respected.
"Our duty and obligation is to comply with the laws, that our laws are fully respected," she said.
European Commissioner for Tech Sovereignty, Security and Democracy Henna Virkkunen said the objective of the legislation was to ensure fair competition.
"The DMA is to make sure we have a fair and level playing field. With these decisions we want to make sure there is competition," she said.
Google criticised the rulings and indicated it could challenge them in court.
Google President of Global Affairs Kent Walker said the company was being forced to remove features valued by users in order to comply with the legislation.
"To comply, we are having to strip away real-time Search features Europeans love, like instant pricing and direct availability for hotels, flights and restaurants, and dismantle safety protections on Google Play," Walker said in a statement.
He argued that the decisions would reduce the quality of Google's products and affect European consumers and businesses.
According to Reuters, Thursday's penalties are Google's first fines under the Digital Markets Act but the fifth and sixth antitrust penalties imposed on the company by the European Commission, bringing its total EU competition fines over almost two decades to more than €10 billion.
The decision comes amid wider tensions between Brussels and Washington over the regulation of large US technology companies. The Trump administration has criticised European digital regulation and has threatened retaliatory trade measures against countries it says unfairly target American firms.
EU officials rejected suggestions that the timing of the fines was linked to trade negotiations or tariff disputes, saying the bloc has the sovereign right to enforce its competition laws within its own market.
Google has 60 days to comply with the Commission's orders while discussions over its proposed changes continue.
HT
