EU fines Google €890 million for Digital Markets Act violations
European regulators have issued their first major penalties under the Digital Markets Act, targeting Google’s search practices and app store policies. The ruling mandates operational changes that could reshape how major tech companies function within the EU.
The European Union has imposed its first major penalties under the Digital Markets Act (DMA), fining Google €890 million for favoring its own services in search results and restricting app developers on Google Play. The decision, announced on 23 July 2026, marks the bloc’s first enforcement action under the landmark law and signals a tougher approach to regulating the market power of large technology companies.
The European Commission’s two separate rulings—€460 million for Google’s search practices and €430 million for restrictions on Google Play—target the company’s alleged anti-competitive behavior. Regulators found that Google systematically promoted its own services, such as Shopping, Hotels, Transport, and Sports, in search results, while limiting app developers’ ability to direct users to alternative payment options outside the Google Play store. The fines, equivalent to about $1 billion, are the latest in a series of EU actions against Big Tech, following previous penalties for Android antitrust violations.
Google has pledged to appeal the rulings but must also comply with the Commission’s orders to alter its operations. The company claims the DMA forces it to remove features Europeans value, such as real-time pricing and availability for travel services, and weaken safety protections on Google Play. “This isn’t fair competition; it’s product degradation driven by a small group of self-serving complainants,” said Kent Walker, Google’s president of global affairs.
The Commission emphasized that the penalties aim to ensure fair competition and expand consumer choice. Teresa Ribera, the EU’s executive vice president for Clean, Just and Competitive Transition, stated, “The best products should succeed because they’re better, not because they’re owned by the company running the search engine.” The ruling also mandates changes to how Google Search displays results and how app developers can communicate with users, potentially reshaping the digital landscape for businesses and consumers alike.
The case highlights growing tensions between the EU and the U.S. over digital regulation. The U.S. Trade Representative’s 2026 report criticized the DMA for creating compliance burdens and disproportionately affecting American tech firms. The White House has also raised concerns, with the America First Trade Policy memorandum urging federal agencies to scrutinize foreign regulations that may disadvantage U.S. companies. However, the EU maintains that the DMA applies equally to all gatekeepers, regardless of their origin.
Google’s compliance efforts have drawn mixed reactions. While the Commission noted “constructive dialogue” and progress in testing changes to search result presentations and app store policies, the company warned that adjustments could harm user experience. The EU has yet to confirm whether daily penalties for non-compliance will be imposed, but the case sets a precedent for future enforcement against other designated gatekeepers, including Apple, Amazon, Meta, and Microsoft.
The Digital Markets Act, which designates companies as gatekeepers based on criteria like market impact and user base, represents a shift from traditional antitrust approaches. Instead of addressing abuses after they occur, the law mandates proactive obligations to prevent anti-competitive practices. The €890 million fine, while significant, is overshadowed by the long-term implications of the Commission’s compliance orders, which could reshape how tech giants operate in the EU and beyond.
