Google has been fined €890m (£759m) by the EU on allegations that it abused its power by favouring its own apps and services over those from rivals. The penalty, announced by the European Commission, is the first major action against the tech giant under the EU's Digital Markets Act (DMA), a landmark law aimed at curbing the power of the world's biggest tech companies.
The Commission argued Google's practices limited consumer choice and gave its own services an unfair advantage over rivals.
But the firm criticised the decision, arguing the EU's requirements could damage services used by millions of European customers.
"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," said Google's president of global affairs Kent Walker.
EU officials rejected that argument, saying the measures are necessary to prevent dominant platforms from disadvantaging rivals.
The total fine handed down to Google comprises two separate breaches of the DMA. The European Commission imposed a €460m penalty after finding Google favoured its own services for helping people book flights and hotels over competitors in search results. It also issued a further €430m fine over Google Play Store rules, with regulators saying the company did not allow people to be shown cheaper offers available outside Google's own marketplace.
Google has a long history of disputes with European regulators, having previously received billions of euros in fines over separate competition cases.
"The best products should succeed because they're better, not because they're owned by the company running the search engine," said EU competition chief Teresa Ribera.
"After this decision, we want to make sure that there is more competition and also other companies are able to innovate," said EU tech boss Henna Virkkunen.
Google now has 60 days to comply with the regulations - or challenge them by taking the Commission to court.
How did the EU calculate the €890m fine?
The €890m total fine is made up of two separate penalties under the DMA. The first was a €460m sanction after regulators said Google gave its own services an advantage in search results when helping users book flights and hotels. The second was a €430m penalty related to Play Store rules, which the Commission said prevented users from seeing cheaper offers outside Google's marketplace.
The DMA is designed to stop the largest online platforms from using their market power to disadvantage competitors. EU officials said Google's conduct fell short of those requirements and distorted competition in areas that affect everyday consumer decisions.
Why is Google challenging the EU's position?
Google says the changes required to meet the EU's order could reduce features and protections that European users rely on. Kent Walker said the company would have to remove real-time Search features such as instant pricing and direct availability for hotels, flights and restaurants, and also dismantle safety protections on Google Play.
EU officials dismissed that argument, saying the regulations are needed to ensure dominant platforms do not put rivals at a disadvantage. The Commission maintained that consumer choice should be based on merit, not on whether a service is owned by the operator of the search engine.
What happens next?
Google has 60 days to comply with the rules or challenge the decision in court. The company can take the European Commission to court if it decides to contest the findings.
Google's case adds to a long record of clashes with European regulators, who have previously imposed billions of euros in fines in separate competition cases. The latest ruling also comes amid broader EU efforts to force big tech companies to meet stricter standards under the Digital Markets Act.
EU competition chief Teresa Ribera said companies should win customers because their products are better, while Henna Virkkunen said the goal is to ensure more competition and create room for other companies to innovate.
Key Facts
- Google was fined €890m (£759m) by the EU over alleged DMA breaches.
- The penalty includes €460m for favouring its own services and €430m over Play Store rules.
- It is the first major EU action against Google under the Digital Markets Act.
- Google has 60 days to comply or challenge the ruling in court.
- Officials said the rules are meant to protect competition and consumer choice.
AliExpress was also fined a record €550m by the EU for allowing the sale of illegal goods, while Google has separately been fined €2.95bn by the EU for abusing advertising dominance.
