Google fined $1 billion by EU over search and Play Store antitrust rules

The European Union has imposed a fine of €890 million ($1 billion) on Google’s parent company, Alphabet, citing violations of the bloc’s Digital Markets Act. The penalties target two specific areas of business operation: the preferential treatment of in-house services within the company's search engine and restrictions preventing application developers from steering users toward alternative payment systems on the Play Store.

The European Commission divided the total sanction into two distinct penalties. A €460 million fine was issued regarding the search engine’s tendency to favor its own Shopping, Hotels, and Flights services. A further €430 million was levied due to rules preventing Android developers from directing users toward potentially less expensive payment methods outside of the company's own ecosystem. This decision follows an investigation lasting more than two years and follows a preliminary ruling issued in March 2025. An extension had previously been granted to the company in May 2026 after the Commission determined that earlier proposals for compliance were not strong enough.

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Teresa Ribera, the European Commission’s Executive Vice President for Clean, Just and Competitive Transition, stated that the intervention serves to protect consumer interests.

"The best products should succeed because they’re better, not because they’re owned by the company running the search engine. And European consumers have a right to be told by app developers where to sign up to the best offers, even when the app store owner does not get a cut."

Teresa Ribera, Executive Vice President for Clean, Just and Competitive Transition, via European Commission

Google has expressed strong opposition to the enforcement. Kent Walker, the company’s President of Global Affairs, characterised the ruling as detrimental to the user experience.

"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."

Kent Walker, President of Global Affairs, via Google

Walker further argued that the mandated changes represent product degradation driven by a small group of self-serving complainants. Historically, the company has maintained that its control over the Play Store is necessary to maintain security. Google has argued that the Digital Markets Act complicates efforts to protect users from malicious links and scams by forcing the removal of certain safety safeguards. While the Commission acknowledged that Google’s recent updates to its terms constituted progress, it ultimately determined that the company’s efforts to achieve compliance were insufficient.

Compliance Requirements and Deadlines

• Search Services: The company is required to treat third-party services in a fair and non-discriminatory manner.
• Play Store: Android developers must be permitted to freely promote alternative payment offers to users both inside and outside the store.
• Timeframe: Google has 60 days to implement these changes or face further periodic penalty payments.

This latest ruling occurs against a backdrop of ongoing friction between Brussels and Washington. President Donald Trump has previously criticised the European Union’s regulatory approach toward American technology firms, suggesting that such penalties could trigger retaliatory trade measures. When Google was previously fined in September 2025, the President threatened fresh trade tariffs against the 27-nation bloc.

The European Commission’s move is the most recent in a series of enforcement actions against major technology entities, following penalties of €500 million and €200 million against Apple and Meta, respectively. Regulators within the bloc categorize these firms as "gatekeepers," asserting that they hold an obligation to maintain a level playing field for competitors. For Google, the total sum of EU liabilities has now reached more than €10 billion, including previous sanctions related to Android, comparison shopping services, and its advertising arm.