EU Fines Google €890 Million ($1 Billion) in First DMA Penalty | LeapRate
It was revealed on Thursday that the European Union has hit Google with a €890 million ($1 billion) fine, marking the first time the tech giant has been penalized under the bloc’s Digital Markets Act (DMA).
The decision highlights Europe’s determination to curb the influence of Big Tech, even as US President Donald Trump has threatened “substantial additional tariffs” on European goods in response.
The European Commission said Google broke DMA rules in two ways. First, by favoring its own services, such as hotels, shopping and transport, over competitors’ offerings on Google Search. Second, by restricting app developers from directing customers to cheaper deals outside the Google Play store. Google was fined €460 million ($524.7 million) for the search practices and €430 million ($490 million) for the app store restrictions.
Commissioner Henna Virkkunen said Google “harms businesses offering similar services” by denying them equal prominence on search results, while limiting how developers can offer discounts to users.
Google has 60 days to comply with the commission’s directives or face additional penalties. The company pushed back strongly, with global affairs president Kent Walker calling the ruling “product degradation” that forces Google to strip away features like real time hotel and flight pricing.
Commissioner Teresa Ribera defended the decision, stating that “the best products should succeed because they’re better, not because they’re owned by the company running the search engine.” The Commission said it will continue engaging with Google to ensure broader compliance with the DMA.
