The European Commission has fined Google’s parent company, Alphabet, €890 million (about $1 billion), concluding that the company violated the European Union’s Digital Markets Act (DMA) by giving preferential treatment to its own services in Google Search and limiting how app developers could direct users to alternative purchasing options outside the Google Play Store. The decision represents the first monetary penalty issued under the EU’s DMA, a law designed to curb the market power of the world’s largest digital platforms.
According to CNBC, the Commission divided the penalty into two parts: €460 million related to Google’s search practices and €430 million concerning restrictions within Google Play. CNBC reported that the decision follows investigations into whether Google used its dominant position to disadvantage competing services in violation of the DMA. The original report was written by CNBC’s Silvia Amaro.
European regulators said Google’s search engine gave disproportionate visibility to the company’s own specialized services—including shopping, travel, and other commercial offerings—while placing rival services at a competitive disadvantage. In a separate finding, regulators concluded that Google prevented app developers from effectively steering users toward alternative payment methods or offers outside the Play Store ecosystem.
The Commission said these practices undermined the DMA’s objective of ensuring fair and contestable digital markets. Executive Vice President Teresa Ribera, who oversees competition policy, said the rules are intended to preserve consumer choice and prevent dominant online platforms from using their market position to restrict competition.
Google criticized the ruling and argued that changes required under the DMA have already significantly altered its products in Europe. Kent Walker, Google’s President of Global Affairs, said the company’s modifications to Search have affected product quality and that additional regulatory requirements could reduce functionality valued by users and businesses.
Despite issuing the fine, the Commission acknowledged that Google has made substantial efforts in recent months to adapt its services to comply with the DMA. Regulators indicated they will continue evaluating the company’s proposed changes as part of the ongoing compliance process.
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Landmark enforcement under the Digital Markets Act
The Digital Markets Act, which became fully applicable to designated “gatekeeper” platforms in 2024, establishes obligations for large technology companies that provide essential digital services. Rather than relying solely on lengthy antitrust investigations after alleged misconduct occurs, the DMA imposes upfront obligations intended to prevent anti-competitive behavior before it harms markets.
Alphabet was designated as a gatekeeper for several core platform services, including Google Search, Google Play, Android, Chrome, Maps, YouTube, Shopping, and parts of its advertising business. The Commission launched formal investigations into Google’s DMA compliance in 2024, focusing in part on search rankings and restrictions affecting app developers.
The Commission has also pursued broader compliance measures requiring Google to improve interoperability and provide greater access to search-related data under the DMA. Earlier this year, regulators outlined proposed requirements governing how Google would share certain search data with third parties on fair and non-discriminatory terms, with final compliance measures expected separately from the enforcement decision.
Part of a broader antitrust record
The latest penalty adds to a series of competition cases the European Union has pursued against Google over the past decade. Previous antitrust decisions addressed Google’s comparison shopping service, Android mobile operating system, and online advertising practices, resulting in several multi-billion-euro fines that have been subject to lengthy appeals. Earlier this month, the EU’s top court upheld a €4.1 billion Android-related antitrust penalty against Google.
Unlike those earlier cases, the new decision is the first financial sanction issued under the Digital Markets Act, highlighting the EU’s shift toward ex ante regulation of dominant digital platforms rather than relying exclusively on traditional competition law.
Next steps
Google may challenge the Commission’s decision through the European courts while continuing discussions with regulators over compliance measures. Under the DMA, companies that fail to comply with Commission decisions can face additional remedies, including periodic penalty payments or substantially larger fines for repeated violations. The Commission said it will continue assessing Google’s implementation of required changes as enforcement of the Digital Markets Act proceeds.
Source: CNBC
