EU Fines Google $1 Billion Over Search and Play Store Rules

European Union antitrust regulators fined Google €890 million ($1 billion) for breaching digital competition rules across its search engine and mobile app store. The European Commission announced the enforcement decision following investigations under the Digital Markets Act.

The European Commission split the financial penalty into two separate decisions. Regulators levied a €460 million fine over search results and a €430 million fine over app store steering practices.

In the search investigation, regulators found that Google gave prominent placement to its own shopping, hotel, transportation, and sports services. Competitors providing similar services received lower visibility in search rankings. The commission stated that this self-preferencing structure harmed rival digital businesses.

Henna Virkkunen, the European Commissioner for tech sovereignty, detailed the findings in an official statement.

“We found that Google harms businesses offering similar services, such as shopping or sports, by not granting them the same level of prominence on Google Search,” Virkkunen said.

The second fine targets rules inside the Google Play Store on Android devices. Investigators found that Google prevented app developers from directing users toward cheaper purchase options outside the app store. The commission also ruled that Google charged steering fees that exceeded regulatory limits.

Teresa Ribera, Executive Vice President of the European Commission, defended the double action.

“The best products should succeed because they're better, not because they're owned by the company running the search engine,” Ribera said.

“And 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,” she said.

Google rejected the commission's findings and announced plans to challenge the ruling. Company executives claimed the decision forces changes that hurt consumer search experiences.

Kent Walker, Google’s president of global affairs, criticized the regulatory orders.

“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.

“Regulation should improve products, not make them worse,” Walker added.

Google must propose solutions to fix the violations within 60 days. The European Commission warned that failure to comply could result in periodic penalty payments of up to 5% of Alphabet’s average daily worldwide turnover. The company retains the right to appeal the decision through European courts.

The decision drew immediate criticism from United States trade officials amid broader trade negotiations. US Trade Representative Jamieson Greer stated that the penalties threaten transatlantic commercial stability.

“These actions undermine efforts at real dialogue and pose a real risk to the continuation of transatlantic stability with respect to trade,” Greer said.

European Commission officials denied that political timing influenced the announcement. Ribera stated that the commission acts strictly under European legal mandates regardless of outside pressure.

“It is our duty to defend the rule of law, including our own laws, independently of how they are perceived or challenged,” Ribera said.

The €890 million fine adds to a long series of legal actions against Google in Europe.

European regulators have fined Google more than €11 billion in total antitrust penalties since 2017.