EU Slaps Google With $1 Billion Fine Over Search and Play Store

The European Union has fined Google $1 billion for violating the Digital Markets Act, targeting the company's dominance in search and app store distribution. The penalty, announced Wednesday, gives the tech giant 60 days to change its business practices or face additional sanctions.

The European Commission imposed the fine under the Digital Markets Act (DMA), which took full effect in March 2024 and aims to curb the power of six designated 'gatekeepers'—Alphabet, Amazon, Apple, ByteDance, Meta, and Microsoft. The commission ruled that Google's search results and Play Store policies unfairly preference its own services over competitors, breaching the DMA's prohibitions on self-preferencing and anti-steering. This is the first DMA penalty against a major tech company, signaling a new era of aggressive enforcement by EU antitrust regulators.

The action stems from a probe launched in March 2024, shortly after the DMA's compliance deadline. Investigators found that Google's search results systematically highlighted its own shopping, travel, and local business listings while demoting rival services. Separately, the Play Store's requirement that in-app purchases use Google's billing system—and the 15% to 30% commission attached—was deemed to restrict developers from steering users to cheaper alternatives. The $1 billion figure represents about 1% of Alphabet's 2024 revenue of $307 billion, well below the DMA's maximum penalty of 10% of global annual turnover (or 20% for repeat offenders). However, the commission warned that noncompliance within the 60-day window could trigger daily fines of up to 5% of daily worldwide revenue.

Google has previously been hit with three EU antitrust fines totaling €8.25 billion ($8.9 billion) since 2017, for practices involving Android (€4.34B), Shopping (€2.42B), and AdSense (€1.49B). The company has challenged those rulings in court and may appeal this one. In a blog post, Google's vice president for competition, Oliver Bethell, said the company would 'make changes' but criticized the fine as 'unjustified and disproportionate.' The European Consumer Organisation (BEUC) praised the penalty, calling it a 'strong signal' that gatekeepers must comply.

Analysts view the fine as a test case for the DMA's broader impact. 'This sets a precedent that the EU is willing to use its new powers aggressively,' said Dr. Anu Bradford, a Columbia Law School professor and author of 'The Brussels Effect.' 'Other gatekeepers—Apple, Meta, Amazon—are now on notice.' The fine also comes as the U.S. Department of Justice is pursuing its own antitrust case against Google over search and advertising, creating a transatlantic ratchet effect. Smaller rivals like DuckDuckGo and Epic Games have already cited the DMA in their own legal battles against Google's app store fees.

Google must submit a compliance plan within 60 days that addresses the search self-preferencing and Play Store billing issues. If approved, changes could include more prominent placement of third-party results in search and allowing developers to link to external payment systems. The commission will monitor compliance with a dedicated task force. Failure to meet the deadline could trigger fines or, in extreme cases, an order to break up parts of Google's business—an option EU antitrust chief Margrethe Vestager has long threatened. Meanwhile, similar DMA investigations into Apple's App Store and Meta's 'pay or consent' model are ongoing, with decisions expected in 2025.