EU fines Google €890 million for self-preferencing in Search and anti-steering on Play Store

The fines

The European Commission imposed two fines on Google totalling €890 million ($1 billion) on Thursday for violating the Digital Markets Act (DMA). The first, €460 million, penalises the company for giving its own services preferential treatment in Google Search results. The second, €430 million, targets restrictions that prevented app developers on Google Play from steering users toward alternative, often cheaper, purchase channels. Google now has 60 days to end the non-compliance or face periodic penalty payments of up to 5% of its total global turnover. The fines are the first levied against Google under the DMA, following earlier penalties against Apple (€500 million) and Meta (€200 million). The total is the largest DMA fine to date.

Search self-preferencing

According to the Commission, Google displayed its own services, including shopping, hotels, transport and sports, more prominently than those of rivals. It placed them at the top of the page and used enhanced visuals and filters that third-party services did not receive. EU officials also pointed to Google’s Snake game being pushed to users over other games. The practice gave Google an unfair advantage in search results, the regulator found. Teresa Ribera, the Commission’s executive vice-president for clean, just and competitive transition, said the best products should win on merit.

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

The Commission ordered Google to treat competing services in a fair and non-discriminatory manner, granting them the same visibility as its own offerings.

Play Store steering restrictions

The second infringement concerns Google Play. The Commission found that Google prevented app developers from freely communicating and promoting offers to users, and from concluding contracts through distribution channels of their choice, including third-party app stores. While Google may charge a fee for facilitating the initial acquisition of a customer via Play, the level of those fees and the duration for which they are charged went beyond what is considered compliant with the DMA, the Commission said. The €430 million fine requires Google to allow developers to direct customers to cheaper alternatives outside the Play Store.

Google’s response and geopolitical backdrop

Kent Walker, president of global affairs for Google & Alphabet, sharply criticised the decision, saying it forces the company to degrade its products.

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.

The fine lands a day before the White House is expected to announce a new round of tariffs, and follows a warning from U.S. Trade Representative Jamieson Greer to stop imposing fees on U.S. tech companies. A Commission official said the penalty “should not come as a surprise” and that the EU has the sovereign right to legislate. Google recently lost an appeal against a €4.1 billion EU fine for limiting competition through its Android operating system.

Compliance path and monitoring

The Commission acknowledged progress in Google’s proposed changes to how it presents its own free services, shopping ads and content-related services like sports on Search, calling it “substantial progress towards compliance.” Changes to Play Store practices were described as “good progress.” The regulator also said it would continue its dialogue with Google on how the decision affects AI Overviews and AI Mode. The investigation, opened on 25 March 2024, now concludes, though Google may appeal the decisions. If Google fails to comply within 60 days, it faces periodic penalty payments that could amount to millions daily, based on up to 5% of its global turnover.