EU hits Google with $1 billion fine over its Play app store and search

EU hits Google with $1 billion fine over its Play app store and search

The European Commission has fined Alphabet Inc.’s Google €890 million, approximately $1 billion, for violating the Digital Markets Act. The penalty follows findings that the company unfairly prioritized its own services and restricted the ability of app developers to direct consumers to offers outside the Google Play Store.

The total fine is split into two distinct penalties: €460 million for abuses related to search and €430 million for breaches concerning the Play Store. According to the European Commission, Google engaged in self-preferencing by giving its own vertical services—including Sports, Transport, Hotels, and Google Shopping—preferential treatment in search results. These services were displayed prominently at the top of results pages, using filters and enhanced visual features that reduced the visibility of third-party competitors.

Regarding the Play Store, regulators penalized Google for enforcing anti-steering rules. These restrictions prevented app developers from informing users about cheaper purchase options available outside the Play Store, meaning developers could not freely facilitate transactions through websites or third-party stores without facing prohibitive steering fees.

Teresa Ribera, the EU competition chief, stated that Google failed to achieve effective compliance with the Digital Markets Act.

"The best products should succeed because they’re better, not because they’re owned by the company running the search engine."

Google has pushed back against the ruling. Kent Walker, President of Global Affairs at Google, claimed that implementing the Digital Markets Act 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 company has already begun trialing modifications to its app store policies and search results. It is also exploring the application of similar principles to AI Mode and AI Overviews. However, the European Commission warned that more action is required.

The decision brings Google's total EU liabilities to more than €10 billion, a figure that exceeds the fines levied against Microsoft Corp., Meta Platforms Inc., and Apple Inc. While this latest fine is among Brussels' smallest against Google, it follows a series of massive penalties. These include a €4.125 billion Android fine, a €2.95 billion penalty for adtech abuses last year, and a €2.42 billion sanction for crushing shopping search rivals. A separate €1.49 billion AdSense levy was annulled by the EU General Court but is currently being appealed by EU lawyers to the bloc's highest chamber.

The enforcement occurs during a period of volatility in EU-US trade relations. US President Donald Trump has repeatedly criticized the efforts of the bloc to rein in Silicon Valley companies. When Google was last fined in September 2025, Trump threatened fresh trade tariffs against the 27-member bloc.

This tension follows a trade deal agreed upon on a political level in July of last year, which the EU ratified last month. That agreement increased tariffs for most EU exports to 15% while eliminating duties for some non-sensitive agrifood products and US industrial goods. The deal was intended to stabilize relations after Trump threatened to pare back American security commitments and threatened to take over Greenland. The accord remains under pressure, as Trump has threatened tariffs on specific EU members, including France and Spain.

Google now has 60 days to comply with the Digital Markets Act. If the company fails to amend its practices, it faces periodic penalties that could reach as much as 5% of its global annual revenue.