Google is facing one of its biggest regulatory setbacks in Europe yet after the European Commission slapped the company with €890 million in fines over how it runs Search and the Play Store.
The European Commission said Thursday that Google breached the European Union’s Digital Markets Act (DMA) in two separate ways, issuing a €460 million fine over Google Search and a €430 million penalty tied to Google Play.
According to the Commission, Google gave its own services, including shopping, hotels, transportation, and sports results, more prominent placement in Search than competing services. Regulators said the company’s own offerings appeared higher in results and benefited from enhanced visuals and filters that rivals did not receive.
The Commission also concluded that Google unlawfully restricted app developers from directing users to alternative purchasing options outside the Google Play Store, including cheaper offers on developers’ websites or third-party app stores. It added that Google’s steering-related fees exceeded what is allowed under the DMA.
As part of the decision, the Commission ordered Google to end both practices. The Commission said Google must comply within 60 days or risk periodic penalty payments of up to 5% of its total worldwide turnover.
Google pushes back
Google strongly contested the Commission’s findings, arguing that forced changes to comply with the DMA fundamentally ruin everyday search functionality. Kent Walker, Google’s President of Global Affairs, warned that European consumers will ultimately bear the brunt of forced compliance.
“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. This isn’t fair competition; it’s product degradation driven by a small group of self-serving complainants, with European businesses and consumers taking the hit,” Walker said, according to CNBC.
Despite the fierce pushback, Google has already begun testing modifications to how search results and app store steering rules function in Europe. The company has 60 days to reach full compliance or face severe periodic penalty payments amounting to up to 5% of parent company Alphabet’s daily global turnover.
Alphabet shares fell roughly 4% in premarket trading following the news, though analysts noted investor focus was heavily split with rising artificial intelligence expenditures.
What this means for businesses and users
The decision could reshape how Europeans use Google Search and Google Play. Rival comparison sites, travel services and other online businesses may gain greater visibility in search rankings, while app developers could have more freedom to steer customers toward lower-cost payment options outside Google’s app store.
For consumers, the changes could increase price transparency and choice. However, Google argues some features users rely on, such as real-time travel information and certain Play Store security protections, could be reduced as it adapts to the new rules.
Also read: Major publishers and author Scott Turow have filed a Gemini AI training lawsuit accusing Google of using copyrighted books and articles without permission.