EU Fines Google $1 Billion for Violating Digital Markets Act

The European Union on Thursday imposed a €890 million ($1 billion) fine on Google for violating the Digital Markets Act (DMA), the bloc’s sweeping competition law aimed at reining in Big Tech. The European Commission, the EU’s executive branch and antitrust enforcer, said Google broke digital antitrust regulations by designing its Google Play app store and ubiquitous search engine to funnel consumers toward its own services and apps, to the detriment of competitors.

“The best products should succeed because they’re better, not because they’re owned by the company running the search engine,” Teresa Ribera, the Commission’s Executive Vice President for Clean, Just and Competitive Transition, said in a statement. “European consumers have a right to be told by app developers where to sign up to the best offers, even when the app store owner does not get a cut.”

The fine is the latest major crackdown on Big Tech by Brussels, which has led the world in regulating some of the largest companies from Silicon Valley to Beijing. It comes just weeks after Google lost its appeal of a separate $4.5 billion antitrust fine imposed by the EU for throttling competition through the dominance of its Android mobile operating system.

**Google pushes back, vows to consider appeal**

Google’s President of Global Affairs, Kent Walker, sharply criticized the decision, calling it “product degradation driven by a small group of self-serving complainants.” He said the DMA forces Google “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.” Walker told Reuters that Google disagrees with the decision and is considering an appeal.

The Commission acknowledged that Google has already made some moves toward compliance. It confirmed that Google has “rolled out changes related to Google’s steering terms,” showing “good progress towards compliance.” The company has also conducted testing on changes to how it presents its own services on Google Search for free services such as shopping, hotels and flights, and how it presents shopping ads and content-related services. Google has said it will voluntarily make changes to its AI Overviews and AI Mode to align with the Commission’s expectations and avoid self-preferencing or anti-steering practices.

**Brussels defies U.S. pressure**

The penalty underscores the EU’s determination to enforce the DMA despite sharp criticism from Washington. U.S. President Donald Trump has previously threatened retaliation if American tech companies are penalized, and his administration has warned that the EU’s access to the U.S. market could be limited if it continues “discriminatory acts, policies, and practices in the digital sector,” according to a letter cited by Ars Technica.

In response, the Commission’s spokesperson Thomas Regnier told Reuters that “when it comes to our rules, the EU has the sovereign right to regulate economic activities on its territory.” He added that the EU will keep enforcing its rules “in a fair and non-discriminatory manner—as we have always done.” Regnier also said the EU believes “there is significant potential to deepen cooperation across a broad set of digital issues, including those identified in the EU-US Joint Statement, while respecting our regulatory autonomy.”

**Yelp applauds the fine, industry watches closely**

The fine was applauded by Yelp, a longtime critic of Google’s alleged self-preferencing practices, according to Ars Technica. The DMA designates seven tech giants — Amazon, Apple, Google parent Alphabet, Meta, Microsoft, and TikTok owner ByteDance — as “gatekeepers” that control access for consumers. The Commission is expected to continue scrutinizing their business models.

“In the EU, businesses have the right to compete fairly,” Regnier said. “Gatekeepers have the obligation to ensure a level playing field and consumers the right to choose for cheaper alternative offers.”

Alphabet reported $403 billion in revenue in 2025, making the €890 million fine a relatively small fraction of its earnings. However, the precedent set by the first DMA penalty signals that Brussels is willing to levy significant financial sanctions to enforce its rules, potentially reshaping how Big Tech operates in Europe and beyond.