EU fines Google €890 million under Digital Markets Act
Google has been fined €890 million by the EU for breaching rules governing search services and its Play Store.
The European Commission has fined Alphabet’s Google €890 million for breaching the Digital Markets Act (DMA), marking one of the bloc’s most significant enforcement actions under its new competition framework for digital platforms.
The Commission imposed a €460 million fine after finding that Google favoured its own services in search results, including shopping, hotels, transport and sports, contrary to the Digital Markets Act (DMA) requirements for fair treatment of competing services.
A separate €430 million fine addressed restrictions within Google Play that prevented app developers from directing users to potentially cheaper offers available through alternative app stores or external websites.
Google has been given 60 days to comply with the European Commission’s decision by treating competing services more fairly and allowing developers greater freedom to direct users outside Google Play.
The company criticised the ruling and indicated it may challenge the decision before the EU courts, arguing that the required changes could reduce the usefulness of Search features and weaken security protections on Google Play.
The Commission nevertheless noted progress in Google’s broader DMA compliance efforts, including ongoing tests that modify how its shopping, hotel and flight services appear in search results, alongside changes affecting advertising, sports and other content.
The Commission also indicated that the principles established by the decision could extend to Google’s AI-powered services, including AI Overviews and AI Mode, signalling that DMA obligations will apply not only to traditional search results but also to emerging generative AI interfaces.
Why does it matter?
The decision represents one of the clearest demonstrations yet of how the Digital Markets Act is being enforced in practice. Rather than focusing solely on financial penalties, the Commission is requiring structural changes to how large digital platforms present services, interact with business users and compete with rivals.
The reference to AI Overviews and AI Mode also suggests that the DMA will increasingly shape the design of AI-powered search services. As generative AI becomes more deeply integrated into online platforms, regulators appear determined to ensure that new interfaces remain subject to the same competition principles as traditional digital services.
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