European regulators have fined Google $1 billion for favoring its own services in search results and restricting app developers on the Play Store. The penalty ranks among the largest issued under the bloc’s Digital Markets Act.
Two violations, two fines
The European Commission announced the penalties this week, dividing the total into two separate fines: €460 million for manipulating search results and €430 million for blocking third-party payment options in the Play Store. Both cases involve rules meant to stop large platforms from abusing their market power.
The Commission determined Google consistently placed its own shopping, travel, and local business services above competitors in search rankings. While the Digital Markets Act requires fair treatment of all services, regulators found Google’s algorithms gave its offerings an advantage. The company has started testing adjustments to search results, including changes to its AI Overviews feature.
The second fine addresses Google Play’s restrictions on app developers. The Digital Markets Act mandates that developers must be able to guide users toward cheaper payment methods outside the store. The Commission concluded Google’s policies—such as high fees and slow processing—made it hard for developers to promote alternatives. Though Google can charge for initial customer acquisition, the fees and delays broke the law.
Compliance deadline and broader impact
Google must now modify its practices within 60 days or risk additional penalties of up to 5% of its global revenue. The company has begun implementing changes, though its leadership has criticized the Digital Markets Act. Kent Walker, Google’s president of global affairs, described the rules as “product degradation driven by a small group of self-serving complainants,” claiming they hurt European businesses and consumers.
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The fines come a year after the EU labeled Google a gatekeeper in online search. The investigation started in 2024 as part of a wider effort to regulate major tech companies. Earlier this month, Brussels required Google to provide equal access to third-party AI chatbots on Android devices, showing the Digital Markets Act’s expanding scope.
Smaller competitors may now have a better opportunity to compete fairly. Many have long struggled to gain visibility in Google’s search results or work around Play Store restrictions. However, compliance will not be straightforward. Google’s search algorithms and app store policies are central to its business, and revising them could take considerable time.
The Commission noted Google’s cooperation but insisted the fines were needed to enforce the law. The company has until early next year to fully comply. It remains uncertain whether the changes will satisfy regulators or if more disputes will follow.
Google has faced repeated clashes with European authorities. Previous antitrust fines total billions, yet the company’s market position has stayed strong. The Digital Markets Act’s stricter rules might shift that balance, but only if enforcement matches Google’s ability to adjust.
