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Google hit with $1 billion fine for breaking EU antitrust rules
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The European Union has fined Google's parent company Alphabet €890 million (approximately $1 billion) for two separate violations of the bloc's Digital Markets Act (DMA). The penalties stem from the company giving its own products preferential treatment in search results and blocking Android developers from directing users to alternative payment options. The fines mark the first major enforcement action under the DMA, which targets large "gatekeeper" platforms.
The European Commission announced the fines today, over two years after opening a non-compliance investigation. The first penalty of €460 million was issued for Google giving its own Shopping, Hotels, and Flights services unfair advantages in search results. The second penalty of €430 million was for Play Store rules that prevented developers from steering consumers to cheaper alternative payment systems. Google has 60 days to change its policies or face additional periodic penalty payments.
Under the ruling, Google must treat third-party services "in a fair and non-discriminatory manner" in search results. For the Play Store, it must allow developers to freely promote offers both inside and outside the store. The Commission had first issued a preliminary ruling in March 2025, and gave Google an extension in May 2026 after deeming its previous proposal insufficient. Google had made some changes, including removing its Flights widget and boosting links to third-party comparison sites.
Google has strongly objected to the EU's actions. The company told Reuters in May that the changes required by the DMA "represent the biggest downgrade in the product's history, creating a second-rate experience for Europeans." For the Play Store, Google has argued that opening up app distribution poses security risks to users, saying the DMA forces it to remove legitimate safeguards against scams and malicious links.
Despite its objections, Google updated certain Play Store terms following consultations, which the Commission said "constitute good progress towards compliance." The company now faces additional scrutiny in the US, where a court ruled that it must carry rival Android app stores after Epic Games' successful lawsuit. This is not the first time Google has been penalized by the EU for antitrust violations; it was fined €2.42 billion in 2017 for giving its comparison shopping service an illegal advantage.
The DMA allows for maximum fines of 10% of a company's global annual revenue—up to $40 billion for Google based on its 2025 revenue of $400 billion. The Commission's ruling sends a strong signal that it will enforce the DMA aggressively against gatekeepers. Google must now overhaul its search and app store policies within two months, with potential for further penalties if it fails to comply.
