Google hit with US$1B EU fine over search, app store rules

Alphabet Inc. 's Google was fined €890 million (US$1 billion) by the European Union for violating the bloc's Digital Markets Act. The decision risks further straining relations with U.S. President Donald Trump, who has criticised EU tech regulation.

The European Commission said Thursday that Google unfairly promoted its own search services and prevented app developers from directing consumers to offers outside its Play Store. The company received a €460 million fine for the search violations and €430 million for the Play Store breaches. The commission gave Google 60 days to comply or face recurring penalties.

"Google has fallen short of effective compliance with the Digital Markets Act, and today we have taken decisive yet balanced enforcement action sanctioning these breaches," EU competition chief Teresa Ribera said. "The best products should succeed because they're better, not because they're owned by the company running the search engine."

Google's President of Global Affairs Kent Walker pushed back. "This implementation of the DMA continues to break everyday products," he said. "To comply, we are having to strip away real-time search features Europeans love – like instant pricing and direct availability for hotels, flights, and restaurants – and dismantle safety protections on Google Play."

The fines follow earlier Digital Markets Act penalties of €500 million against Apple Inc. and €200 million against Meta Platforms Inc. The DMA sets rules for the largest technology platforms, covering areas from search rankings to app store practices.

Thursday's decision pushes Google's total EU liabilities above €10 billion, a sum that dwarfs fines imposed on Apple, Meta and Microsoft Corp. under the same law. The commission has not said when it will rule on additional investigations into Google's ad-tech practices. Read more on GOOGL stock page and the stock market analysis.