EU Hits Google With €890 Million Fine in Landmark Digital Markets Act Ruling

Google has been fined €890 million by the European Commission after regulators concluded the technology giant abused its dominant market position by favouring its own services over those of competitors, marking the most significant enforcement action yet under the European Union’s Digital Markets Act (DMA).

The penalties, announced on Thursday, underscore the EU’s determination to reshape competition in the digital economy by limiting the market power of major technology platforms.

The Commission imposed a €460 million fine over Google’s search practices, finding that the company systematically prioritised its own flight and hotel booking services in search results at the expense of rival providers. A further €430 million penalty was levied over Google Play Store policies, with regulators concluding that the company restricted app developers from directing consumers to lower-priced offers available outside Google’s marketplace.

The decision represents the first major sanction under the DMA, legislation designed to prevent so-called “gatekeeper” platforms from using their market dominance to disadvantage competitors and restrict consumer choice.

Google strongly rejected the ruling, warning that compliance with the EU’s requirements could diminish the quality of services available to European users. The company argued that the mandated changes would require it to remove popular search features, including real-time hotel, restaurant and flight pricing, while weakening security protections within the Google Play ecosystem.

European officials dismissed those claims, maintaining that the measures are necessary to restore fair competition and create opportunities for innovation across digital markets.

EU Competition Commissioner Teresa Ribera said successful products should prevail because of their quality rather than the privileged position of the platform that hosts them. Technology Commissioner Henna Virkkunen added that the decision is intended to foster greater competition and encourage innovation among smaller technology firms.

The latest ruling adds to Google’s long-running regulatory battles in Europe, where the company has accumulated billions of euros in antitrust penalties over the past decade.

Industry analysts suggest the timing of the decision is also geopolitically significant. Zach Meyers, Director of Research at the Centre on Regulation in Europe, argued that Brussels had initially delayed enforcement to avoid exacerbating tensions with Washington amid renewed trade disputes under the Trump administration. However, he said EU policymakers ultimately prioritised regulatory credibility over diplomatic caution.

Google has been given 60 days to comply with the Commission’s directives or seek judicial review before the European courts, setting the stage for what could become another closely watched legal battle over the future of digital competition in Europe.