Sources: European Commission | Google
The European Commission has imposed a combined €890 million fine on Google for breaching the European Union’s Digital Markets Act (DMA). Announced on 23 July, the decision marks Google’s first major financial penalty under the new legislation and centres on the company’s Search and Google Play businesses. According to the Commission, Google failed to comply with rules designed to ensure fair competition across digital markets.
Along with the financial penalty, EU regulators directed Google to end the identified infringements under the Digital Markets Act, with further compliance measures outlined in the Commission’s order.
Breaking Down the Fine
The Commission divided the €890 million penalty into two separate enforcement decisions after concluding that Google violated two key obligations under the Digital Markets Act. The investigation focused on Google’s Search services and the policies governing Google Play.
The first penalty of €460 million relates to Google Search. Regulators found that Google systematically gave greater prominence to its own specialised services, including Google Shopping, Google Hotels, Google Flights and other vertical search products. According to the Commission, these services received more favourable positioning and richer visual presentation than competing platforms, reducing visibility for rival businesses.
The second penalty of €430 million concerns Google Play. The Commission concluded that Google prevented app developers from freely informing users about cheaper subscriptions, payment methods and alternative offers available outside the Play Store. Regulators said these restrictions limited consumer choice and prevented developers from communicating better purchasing options directly to users.
Google Files Appeal
Google has rejected the Commission’s findings and confirmed that it intends to appeal the decision. The company said several of the required changes could reduce the quality of Search results and affect features that users rely on for real time information related to hotels, flights and other services.
Google also argued that the Commission’s requirements could impact the experience offered through Google Play. The company maintained that it has been working with European regulators on compliance measures and believes some of the requested changes could negatively affect both developers and users.
The European Commission acknowledged that Google had tested several compliance proposals during discussions. Regulators concluded that the measures introduced so far do not fully satisfy the obligations required under the Digital Markets Act.
EU Issues Compliance Order
Google has been given 60 days to comply with the European Commission’s order covering both its Search and Google Play businesses. If the company fails to meet the deadline, the European Union can impose periodic penalty payments of up to 5% of Alphabet’s average daily worldwide turnover until the violations are resolved.
Alphabet, Google’s parent company, is one of the digital gatekeepers designated under the Digital Markets Act. The legislation also applies to other major technology companies, including Apple, Amazon, Meta, Microsoft and ByteDance.
European Commission Executive Vice President Teresa Ribera said companies should succeed by offering better products rather than benefiting from the control of digital platforms. Google, meanwhile, said it will continue engaging with regulators while pursuing its legal appeal.