Alphabet’s Google was fined 890 million euros ($1.0 billion) by European Union regulators on Thursday for breaching the bloc’s landmark Digital Markets Act (DMA), marking the company’s first penalty under the new rules aimed at curbing the power of Big Tech.
The European Commission said Google gave preferential treatment to its own services, including shopping and hotel listings, over rival offerings in search results.
According to the Commission, Google’s own services appear “more prominently in search results,” while similar third-party services “do not have the same prominence.”
The regulator also found Google had breached the DMA’s anti-steering provisions, which require app developers distributing software through the Google Play Store to be free to inform users about alternative offers, including cheaper options available outside Google’s marketplace.
“In particular, Google prevents app developers from freely communicating and promoting offers and concluding contracts with users in distribution channels of their choice, including third-party app stores,” the Commission said.
Google said it was reviewing the decision and considering whether to appeal.
Kent Walker, president of global affairs at Google and Alphabet, said the ruling would harm users and businesses.
“This implementation of the DMA continues to break everyday products. 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.
“This isn’t fair competition; it’s product degradation driven by a small group of self-serving complainants, with European businesses and consumers taking the hit. Regulation should improve products, not make them worse.”
The Commission ordered Google to treat third-party services in search results in a “fair and non-discriminatory manner.” It also said the company must allow app developers using Google Play to “promote offers and conclude contracts with users not only within but also outside the Google Play app store.”
The regulator said Google had proposed and begun testing changes to the way it presents its own services in search, describing the move as “substantial progress towards compliance.” It added that it would monitor implementation. Google has also introduced changes related to its app store steering terms.
The company has 60 days to comply with the decision or face additional fines of up to 5% of its worldwide turnover.
The Digital Markets Act, which took effect in 2024, imposes stricter obligations on major online platforms designated as “gatekeepers,” including Alphabet, Apple and Meta.
Google has argued that changes to its search business could worsen the experience for European users and hurt travel companies that rely on its search platform for traffic and bookings. It has also said directing users to third-party websites from Google Play could create security risks.
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Faustine Ngila is the AI Editor at Impact Newswire, based in Nairobi, Kenya. He is an award-winning journalist specializing in artificial intelligence, blockchain, and emerging technologies.
He previously worked as a global technology reporter at Quartz in New York and Digital Frontier in London, where he covered innovation, startups, and the global digital economy.
With years of experience reporting on cutting-edge technologies, Faustine focuses on AI developments, industry trends, and the impact of technology on society.
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