EU Fines Google €890 Million Over DMA Violations, Escalating US-EU Tech Tensions

The European Union (EU) announced on Thursday (23rd) a total fine of €890 million ($1 billion) against Google, a subsidiary of Alphabet, for breaching the Digital Markets Act (DMA). This move risks further escalating tensions with former U.S. President Donald Trump and the broader U.S. tech sector.

The European Commission stated that Google unfairly favored its own search services and prevented app developers from directing users to better deals outside the Google Play Store. Google was fined €460 million for abuse related to its search service and €430 million for violations concerning the Play Store, marking the first major enforcement action under the DMA in both search and app distribution.

The Commission found that Google prioritized its own services—such as shopping, hotels, transportation, and sports—in search results, thereby denying equivalent visibility to third-party competitors. This constitutes illegal 'self-preferencing' under the DMA.

Additionally, Google failed to comply with DMA requirements by restricting app developers from informing users about lower-priced alternatives available outside the Google Play Store. It also hindered developers from guiding users to complete transactions off-platform, undermining user choice and fair competition.

Under Thursday’s decision, the EU Commission demands that Google treat third-party services in search results fairly and non-discriminatorily, and allow developers to freely promote offers and facilitate off-Play Store transactions.

Google has been given 60 days to comply with the DMA. Failure to do so may result in periodic penalty payments.

Teresa Ribera, the EU’s competition chief, said: 'Google has failed to effectively comply with the DMA. Today, we are taking decisive and proportionate enforcement action against these breaches. The best products should succeed because they are superior—not because they belong to the search engine operator.'

Kent Walker, Google’s President of Global Affairs, responded: 'The enforcement of the DMA continues to degrade products that users rely on every day. To comply, we’ve had to remove real-time search features beloved by European users—such as instant pricing and booking availability for hotels, flights, and restaurants—and dismantle security protections on Google Play.'