Sunday, July 26, 2026 -The European Union has fined Google €890 million ($1 billion) for breaching rules designed to promote competition in digital services, marking the first time the company has been penalized under the bloc’s landmark Digital Markets Act (DMA).
The fines highlight Europe’s resolve to rein in the power of
Big Tech, despite US President Donald Trump threatening to respond with
“substantial additional tariffs” on European goods.
The
European Commission, the EU’s executive arm, stated that Google failed to
comply with the DMA by promoting its own services—including for hotels,
shopping, and transport—on Google Search over those of competitors, as well as
restricting how app developers sell services to customers.
“We found that Google harms
businesses offering similar services, such as shopping or sports, by not
granting them the same level of prominence on Google Search. We also found that
Google has restricted app developers from offering cheaper offers to customers
in the Google Play app store.”
The Commission fined the company €460 million ($524.7
million) and €430 million ($490 million) respectively for the two separate
infractions. The fines took into account the gravity and duration of
non-compliance, although it was noted that Google had already begun testing and
rolling out some changes following a constructive dialogue.
According to the Commission, Google displays its own services
more prominently than rivals, including by placing them at the top of the
search results page and using enhanced visuals and filters. Google also
prevents app developers from promoting offers and entering into contracts with
customers in alternative distribution channels, including third-party app
stores.
Google has 60 days to implement measures directed by the
Commission—including allowing app developers to enter into contracts with users
outside the Google Play app store—or face further penalties.
Google hit back at the decision, claiming 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.”
The US Trade Representative also criticized the penalty,
stating that recent actions under the Digital Markets Act undermine
constructive dialogue and pose a real risk to the continuation of transatlantic
stability regarding trade.
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