Google hit with $1B EU antitrust fine over Search and Play Store practices

Alphabet's Google has been fined a combined €890 million ($1 billion) by European Union regulators for violating landmark digital competition rules, even as Brussels acknowledged the company has made significant progress toward complying with the bloc's new antitrust framework.

The penalties, announced on Thursday under the Digital Markets Act, target GOOG treatment of rivals in its search engine and app marketplace, reinforcing the EU's determination to curb the market power of large technology companies despite growing political pressure from the United States.

However, the European Commission indicated that Google's recent efforts to modify its products have been constructive, suggesting the company is unlikely to face additional daily fines if it continues on its current compliance path.

Search and Play Store practices draw penalties

The larger of the two penalties, worth €460 million, relates to Google's search engine.

The European Commission said Google unfairly favoured its own services in search results covering shopping, hotels, transport and sports, giving them preferential placement over competing offerings.

A second fine of €430 million concerns Google's Play Store policies, where regulators found the company prevented app developers from directing users, free of charge, to cheaper offers available on rival app stores or external websites.

The Commission said such practices breached the Digital Markets Act, legislation introduced to prevent dominant digital platforms from using their scale to disadvantage competitors.

"Our duty and obligation is to comply with the laws, so that our laws are fully respected," EU antitrust chief Teresa Ribera told reporters.

"The DMA is to make sure we have a fair and level playing field. With these decisions we want to make sure there is competition," EU tech chief Henna Virkkunen added.

Under the DMA, companies can face fines of up to 10% of their annual global turnover for violations.

According to an EU official cited by AFP, Thursday's penalties amount to roughly 0.22% of Google's global revenue.

Google considers legal challenge

Google criticised the Commission's findings, arguing that the required changes would ultimately harm consumers and businesses across Europe.

"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," Kent Walker, Google's President of Global Affairs, said in a statement.

"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. Regulation should improve products, not make them worse."

The company has 60 days to comply with the Commission's cease-and-desist orders and said it is considering challenging the decision in court.

Regulators praise compliance efforts

Despite the fines, the Commission struck a noticeably more conciliatory tone regarding Google's ongoing compliance efforts.

Officials pointed to what they described as a "constructive dialogue" with the company and highlighted meaningful progress in adapting several of its services to satisfy the DMA.

Google has already begun testing changes to how it displays its own shopping, hotel and flight services within Search, while also experimenting with modifications to shopping advertisements and sports-related content.

"The Commission also notes that Google has proposed and started testing changes to how it presents shopping ads and content-related services, such as sports," the regulator said.

It added that these changes will continue to be assessed through ongoing discussions with the company.

The Commission also indicated that the principles established in Thursday's decision could eventually apply to Google's AI-generated search products, including AI Overviews and AI Mode.

Separately, regulators said Google's revised steering rules for Play Store developers appear to represent "good progress towards compliance" and will also be evaluated further.

The comments suggest Brussels is unlikely to pursue additional financial penalties if Google continues implementing the required changes.

EU maintains pressure despite US criticism

The latest action highlights Europe's continued willingness to enforce its digital competition rules despite criticism from Washington.

The fines arrive just days before the first anniversary of a tariff agreement between the United States and the European Union that helped ease broader trade tensions.

US President Donald Trump's administration has repeatedly accused Brussels of unfairly targeting American technology companies and has threatened retaliatory tariffs over European digital regulation.

European officials, however, dismissed suggestions that geopolitical pressure would influence enforcement.

Ribera said the Commission's responsibility is "to ensure that the regulation that is being adopted by our sovereign institutions is fully enforced and respected."

She also noted that similar antitrust cases are being pursued in the United States, arguing that American regulators are addressing comparable competitive concerns.

The latest penalties mark the third major enforcement action under the Digital Markets Act after fines imposed on Apple and Meta Platforms last year.

Google has also faced a series of earlier EU antitrust cases.

Between 2017 and 2019, the company was fined a combined €8.2 billion under previous competition rules.

Last year, Brussels imposed another €2.95 billion penalty in a separate antitrust case, prompting renewed criticism from the Trump administration.