Key facts
- The EU fined Google €890 million for breaching the Digital Markets Act.
- Google must change how it ranks rivals in search results and polices its app store.
- The fine comprises €460 million for self-preferencing in search and €430 million for Play Store restrictions.
- Google has 60 days to comply or face daily penalties of up to 5% of Alphabet's worldwide turnover.
- The Digital Markets Act focuses on changing company operations to address market dominance.
The European Union has fined Google €890 million for breaching the bloc's Digital Markets Act (DMA), ordering the U.S. tech giant to overhaul its search result rankings and app store policies. This marks the third significant penalty under the three-year-old law, which aims to regulate dominant tech platforms.
The fine is split into two parts: €460 million for Google's self-preferencing in search results, where its own services received better placement than competitors, and €430 million for restricting app developers on the Android Play Store from informing users about cheaper offers outside the platform and charging excessive fees.
Google has pushed back against the ruling, with its president of global affairs, Kent Walker, stating that the decisions force the company to degrade its products and weaken safety protections. Google is evaluating its options, including an appeal, and has 60 days to comply or face further daily penalties of up to 5 percent of Alphabet's worldwide turnover.
European Commission executive vice-president Teresa Ribera emphasized that the DMA's intention is to ensure well-functioning markets, not to punish, but that sanctions are necessary in certain cases. She indicated that Google has already begun testing some fixes and that talks continue regarding AI Overviews and AI Mode.
The EU's enforcement action comes at a politically sensitive time, as the U.S. administration under President Donald Trump has previously characterized EU penalties on American tech companies as discriminatory trade barriers. Ribera rejected any suggestion that political pressure influenced the decision, stating the Commission is bound by law.