EU Fines Google €890 Mln for Breaching Digital Competition Rules

The European Union has fined Google €890 million (US$1.02 billion) for violating the bloc's digital competition rules, accusing the US technology giant of abusing its dominant position in online search and app distribution.

The European Commission said its investigation found that Google unfairly favoured its own services in search results while giving rival platforms less visibility. Regulators also concluded that the company restricted app developers from directing users to cheaper offers outside the Google Play Store.

Digital Commissioner Henna Virkkunen said Google's practices harmed businesses offering competing services, including shopping and sports platforms, by denying them equal prominence in search results.

Competition Commissioner Teresa Ribera noted that consumers should be able to access the best deals regardless of whether they are offered through Google's platforms, adding that competition should be driven by product quality rather than market dominance.

The Commission warned that Google could face additional financial penalties if it fails to comply with the EU's Digital Markets Act (DMA).

Google rejected the decision, with President of Global Affairs Kent Walker arguing that the ruling would reduce the quality of services used by European consumers. He said the measures could remove popular real-time search features, including hotel, flight and restaurant information, while weakening security protections within Google Play.

The EU has designated Google and its parent company, Alphabet, as "gatekeepers" under the Digital Markets Act, alongside Amazon, Apple, Meta, Microsoft and ByteDance, requiring them to comply with stricter competition rules.

The latest penalty is part of the EU's broader crackdown on Big Tech. In 2018, the bloc imposed a €4.3 billion fine on Google over Android's market dominance, a decision that was upheld after the company lost its appeal earlier this year.

Brussels has also intensified enforcement against other major technology companies, including AliExpress and Meta, as it seeks to strengthen competition, consumer protection and digital market fairness across the European Union.