European regulators have fined Google 890 million euros (US$1 billion), alleging the company gives preferential treatment to its own services, such as shopping and hotels, over those of third parties in search results.
The fine is Google’s first under the European Union’s sweeping Digital Markets Act, which aims to scrutinize Big Tech’s operating practices in Europe.
The European Commission said Google displays its own services “more prominently in search results,” while similar third parties “do not have the same prominence.”
The Allegations
The Commission also found Google in breach of so-called anti-steering measures. Under the regulation, app developers who distribute their product via Google Play should be able to inform customers of alternative, sometimes cheaper offers — even if those offers are on external websites.
The Commission said Google failed to comply with that obligation.
“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’s Response
Kent Walker, president of global affairs at Google and Alphabet, said the DMA will ruin the product experience for users.
“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.
“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.”
Google said it is reviewing the decision and evaluating whether to appeal.
What Google Must Do
The regulator ordered Google to treat third-party services on search results in a “fair and non-discriminatory manner.” It also said Google must allow app developers to “promote offers and conclude contracts with users not only within but also outside the Google Play app store.”
The Commission said Google proposed and began testing changes to how it presents its own services on search. The regulator said it would monitor the implementation of this move, which constitutes “substantial progress towards compliance.”
Google has 60 days to comply with the Commission’s decision, or it could be fined up to 5% of its worldwide turnover.
The Broader Context
The EU introduced the Digital Markets Act in 2024. Under the law, large tech platforms such as Alphabet, Apple, and Meta have been designated “gatekeepers,” which means they are subject to additional provisions.
Shares of Google-parent Alphabet were around 4% lower in premarket trading, but that primarily reflected investor unease over rising AI spending outlined in the company’s earnings report on Wednesday.
The Bottom Line
The EU has fined Google $1 billion under the Digital Markets Act for giving preferential treatment to its own services in search results. The Commission found Google violated both search neutrality and anti-steering rules. Google says the changes required will degrade European users’ experience and has not ruled out an appeal. The company has 60 days to comply or face additional fines.
