Google Fined $1 Billion by EU Under Digital Markets Act, but Avoids Further Penalties

The European Commission on Thursday fined Alphabet’s Google a total of €890 million ($1 billion) for breaching the European Union's landmark Digital Markets Act (DMA). Despite the significant penalty, the U.S. technology firm appears likely to avoid further daily fines after regulators acknowledged “constructive dialogue” and progress on compliance measures.

Details of the Penalties

The Commission, the EU's executive arm, imposed two separate fines on the tech giant. These are the first penalties issued to Google under the DMA, which is designed to ensure a level playing field by reining in the power of major technology platforms.

• A €460 million fine was levied for favoring its own services—such as shopping, hotels, and flights—in its search results over those of rivals.
• A second €430 million fine targets restrictions on the Google Play store that prevent app developers from directing users to cheaper offers outside of Google's ecosystem.

These fines bring the total penalties imposed on Google by the EU for anti-competitive practices to €10.38 billion over nearly two decades, according to a Reuters report.

A Path to Compliance

Ad

While imposing the fines, the Commission signaled that Google's recent efforts could prevent additional penalties for non-compliance. Regulators pointed to a "constructive dialogue" and said Google has started testing changes to how it presents its own services on Google Search and is adjusting its steering terms on Google Play.

"Google has proposed and started testing changes," the Commission stated, calling it "substantial progress." The EU watchdog confirmed it will assess the effectiveness of these changes and that discussions will continue, including on the application of these principles to Google's AI-generated search summaries.

Google's Response and Market Context

Google criticized the EU's findings and indicated it may challenge the decision in court. Kent Walker, Google's President of Global Affairs, argued the required changes would lead to "product degradation driven by a small group of self-serving complainants, with European businesses and consumers taking the hit."

The penalties underscore the EU's firm regulatory stance on Big Tech under the DMA. The legislation has also been used to impose fines on other major U.S. tech companies, including Apple and Meta Platforms, as European regulators intensify their scrutiny of digital market practices.