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The European Commission has fined Google €890 million for breaching the Digital Markets Act, concluding that the company gave preferential treatment to its own services in Google Search and restricted app developers from directing users to cheaper offers outside the Google Play Store. The Commission ordered Google to change both practices. Google said it is evaluating its options, including an appeal, and warned the ruling would reduce some search features and Play Store protections for European users.
Details
- Search ruling: Google was fined €460 million after the Commission found it gave its own shopping, hotel, transport and sports services more prominent placement than rival offerings in search results.
- Play Store case: The Commission imposed a €430 million fine after finding Google prevented developers from directing users to lower-priced offers outside Google Play and charged steering-related fees that breached the Digital Markets Act.
- EU response: Competition Commissioner Teresa Ribera said the Digital Markets Act is intended to ensure the best products succeed on merit, while Digital Commissioner Henna Virkkunen said Google’s practices harmed competing businesses and limited consumer choice.
- Google’s response: Google President of Global Affairs Kent Walker described the decision as “product degradation driven by a small group of self-serving complainants,” arguing it would remove popular search features and weaken security protections on Google Play. The company said it is evaluating its options, including an appeal.
- Compliance deadline: Google has 60 days to comply with the Commission’s decision or face further enforcement proceedings that could include daily penalties of up to 5% of Alphabet’s average worldwide daily turnover. The Commission said Google has already begun testing changes to some Search features while discussions continue over AI-powered search services.
What to Watch
Attention will turn to whether Google’s proposed changes satisfy EU regulators before the 60-day compliance deadline and whether the company appeals the decision. The outcome could shape future enforcement of the Digital Markets Act, including the Commission’s approach to AI-powered search features.
