The European Commission slapped Google with roughly $1 billion in fines Thursday for rigging search results against competitors and blocking app developers from steering users toward cheaper deals outside its Play store. The decision marks the first penalties against the tech giant under the EU's Digital Markets Act, following similar enforcement actions against Apple and Meta last year.
The fine splits in two directions: $524 million targets Google's search manipulation, while $490 million addresses Play store violations. Google has 60 days to comply with the ruling.
Beyond the financial hit, the European Commission ordered Google to overhaul how it ranks rival services in search results and restructure its app store operations. Specifically, Google must treat third-party services fairly and without discrimination in search rankings. The company also must let app developers freely promote offers and sign contracts with users outside the Google Play ecosystem.
Teresa Ribera, the commission's executive vice president, framed the action in blunt terms: "The best products should succeed because they're better, not because they're owned by the company running the search engine." European tech sovereignty chief Henna Virkkunen added: "Today's decisions send a clear message: we will not hesitate to use our tools."
The timing stings sharply. Thursday's enforcement action lands just one day before the White House is expected to announce a fresh round of tariffs, a move that follows a direct warning from U.S. Trade Representative Jamieson Greer urging the EU to stop imposing fees on American tech companies. Google did not immediately respond to requests for comment, but Kent Walker, the company's president of global affairs, issued a blistering statement.
"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," Walker said. He characterized the requirements as "product degradation driven by a small group of self-serving complainants" rather than genuine competition.
The European Commission signaled it may not press harder immediately. Officials described Google's proposed search changes as "substantial progress towards compliance" and its Play store overhaul as "good progress," suggesting Brussels built flexibility into the ruling. The commission also said it would continue dialogue with Google on how the decision affects the company's AI Overviews and AI Mode features.
This latest fine is the third major enforcement action under the Digital Markets Act, but it extends a pattern of aggressive EU tech regulation that has already cost Google billions. In September, the commission hit Google with a $3.5 billion antitrust penalty for favoring its own ad-tech services, a move that prompted Trump to threaten Europe with tariffs. Earlier this month, the EU's top court upheld a separate $4.5 billion fine over Google's use of Android to entrench its search dominance. A U.S. judge separately determined that Google illegally monopolized online ad-tech markets.
Author James Rodriguez: "Europe's willingness to swing the enforcement hammer the day before Trump promises tariffs shows Brussels isn't backing down, but Google's degradation argument might resonate with regulators who fear real consumer pain."
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