Alphabet-owned Google has been fined a total of €890 million (around $1 billion) by the European Commission for violating the European Union's Digital Markets Act (DMA), marking the company's first penalties under the landmark law.
Despite the hefty fine, regulators indicated that Google could avoid additional sanctions as ongoing discussions over compliance have shown encouraging progress, Reuters reported.
The decision highlights the EU's continued push to curb the dominance of Big Tech companies, even as the bloc faces criticism from the US over its regulatory approach toward American technology firms.
Why Google Was Fined
The European Commission imposed two separate fines on Google under the DMA.
The first penalty of €460 million relates to Google's search business. Regulators found that the company unfairly promoted its own services, including shopping, hotels, transport and sports results, ahead of competing platforms in Google Search.
The second fine of €430 million concerns Google Play. The Commission said Google restricted app developers from directing users to cheaper offers available outside the Play Store, limiting competition and consumer choice.
These are Google's fifth and sixth major EU antitrust penalties over nearly two decades, taking the company's cumulative fines in Europe to €10.38 billion.
Google Gets 60 Days To Comply
The Commission has given Google 60 days to comply with its orders. The company must ensure fair treatment of rival services in search results and allow developers greater freedom to guide users toward alternative purchasing options outside Google Play.
Reacting to the decision, Google criticised the findings and indicated it could challenge the ruling in court.
Kent Walker, Google's President of Global Affairs, said the required changes would remove several search features that users value, including real-time pricing and direct availability for hotels, flights and restaurants. He also argued that the decision would weaken security protections on Google Play.
Walker added that the measures would lead to "product degradation" rather than fair competition.
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EU Signals Constructive Progress
Despite imposing the fines, the European Commission acknowledged that Google has been engaging constructively with regulators to meet the DMA's requirements.
According to the Commission, Google has already started testing changes to how it displays its own services in Search, including shopping, hotel and flight results. It is also evaluating modifications related to shopping advertisements and sports-related content.
The regulator said it will continue assessing these changes before deciding whether further enforcement action is necessary.
The Commission also noted that similar principles could eventually apply to Google's AI-generated Search features, including AI Overviews and AI Mode.
Wider Big Tech Crackdown Continues
The ruling comes as the European Union intensifies enforcement of the Digital Markets Act, legislation designed to prevent dominant digital platforms from abusing their market power.
The fines against Google follow earlier DMA penalties imposed on Apple and Meta. At the same time, the EU's actions have drawn criticism from the administration of US President Donald Trump, which has argued that the bloc unfairly targets American technology companies and has warned of possible retaliatory tariffs.
For now, Google's immediate challenge will be complying with the Commission's orders while deciding whether to contest the penalties through the European courts.
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