Google fined €890 million by EU for DMA violations, Alphabet faces fresh antitrust setback

Alphabet-owned Google has been handed nearly €890 million in fresh fines by the European Union for breaching the bloc's landmark Digital Markets Act (DMA). However, regulators have also signalled that the company is making meaningful progress towards compliance, raising hopes that additional penalties may not follow if the current discussions continue positively. The European Commission announced two separate penalties on Thursday, taking Google's total antitrust fines in Europe to more than €10.38 billion over the past two decades, Reuters reported. The latest enforcement action reinforces the EU's determination to curb the dominance of major technology companies despite growing political pressure from the United States.

Why has Google been fined?

The Commission imposed two separate penalties under the Digital Markets Act. The first fine, worth €460 million, relates to Google's search business. Regulators found that the company unfairly prioritised its own services, including shopping, hotels, transport and sports, over competing platforms in search results.

The second penalty of €430 million concerns Google Play. According to the Commission, Google's app store policies restricted developers from directing users to alternative app stores or websites where apps or digital content could be purchased at lower prices.

The fines mark Google's first penalties under the Digital Markets Act, although they are the fifth and sixth antitrust sanctions imposed on the company by the European Commission overall.

What is the Digital Markets Act designed to do?

The DMA is one of the European Union's flagship laws aimed at reducing the power of dominant digital platforms, known as "gatekeepers". It seeks to ensure that companies with significant market influence do not unfairly disadvantage rivals or restrict consumer choice.

Under Thursday's ruling, Google has 60 days to comply with the Commission's orders. This includes changing how it displays competing services in search results and allowing app developers greater freedom to guide customers towards alternative purchasing options outside Google Play.

EU says competition must come first

European Commission Executive Vice-President for Competition Teresa Ribera defended the action, saying the bloc was simply enforcing its own laws. "Our duty and obligation is to comply with the laws, that our laws are fully respected," Ribera told reporters.

European Commissioner for Tech Henna Virkkunen said the DMA was intended to create a fair marketplace rather than punish companies. "The DMA is to make sure we have a fair and level playing field. With these decisions we want to make sure there is competition," she said.

Google criticises ruling and hints at legal challenge

Google has strongly disagreed with the Commission's findings and indicated it may challenge the decisions in court. Kent Walker, Google's President of Global Affairs, argued that complying with the EU's requirements could reduce the quality of services available to European users.

According to Walker, the company may have to remove features such as real-time hotel, flight and restaurant pricing in Search while also weakening certain safety protections on Google Play. He described the Commission's approach as forcing "product degradation" rather than promoting genuine competition, arguing that European consumers and businesses would ultimately bear the cost.

Why further EU penalties may not happen

Despite imposing substantial fines, the European Commission also adopted a notably conciliatory tone, saying it has maintained a "constructive dialogue" with Google throughout the compliance process.

Regulators acknowledged that Google has already begun testing changes to the way it presents its own services in Search, including shopping, hotel and flight listings. The company is also experimenting with modifications affecting shopping advertisements and sports-related content.

The Commission said these efforts represent significant progress and will continue to be assessed before deciding whether any additional enforcement action is necessary. As a result, the prospect of daily non-compliance fines appears less likely for now.

AI Overviews also under scrutiny

The Commission confirmed that the principles established in Thursday's decision may also apply to Google's artificial intelligence-powered search features, including AI Overviews and AI Mode. Discussions between regulators and Google are expected to continue as the company works to ensure these AI-generated search summaries comply with the Digital Markets Act.

Meanwhile, Brussels also welcomed Google's proposed revisions to Google Play's steering rules, describing them as another positive step towards meeting regulatory requirements.

Political tensions continue between Europe and the US

The EU's increasingly aggressive regulation of large American technology firms has become a source of friction with Washington. US President Donald Trump's administration has criticised European actions against major US technology companies and has threatened retaliatory tariffs, arguing that the measures unfairly target American businesses. Several US lawmakers have also voiced similar concerns over the EU's regulatory approach.

Even so, European regulators have maintained that their actions are based solely on enforcing competition laws rather than targeting companies based on nationality.

A growing list of Big Tech enforcement actions

The latest decisions represent the third set of fines issued under the Digital Markets Act, following earlier penalties imposed on Apple and Meta Platforms. With Thursday's action, Google's cumulative EU antitrust penalties now stand at €10.38 billion, making it one of the most heavily fined technology companies in European regulatory history.