EU fines Google $1 billion for search, payment violations
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The European Commission fined Alphabet's Google €890 million ($1 billion) on Thursday for violating the Digital Markets Act by favoring its own services in search results and restricting Android developers from offering alternative payment options. The penalty, the largest under the DMA, is split into €460 million for search bias and €430 million for payment restrictions. The decision is expected to escalate trade tensions with the US, as the Trump administration has previously threatened retaliation against EU tech regulation.
The Violations
The European Commission found that Google gave its own shopping, travel, and other services preferential placement in search results, using enhanced visual elements and filters while pushing rival services lower. This violated the DMA requirement that gatekeepers treat third-party services equally. Separately, Google prevented Android app developers from informing users about cheaper alternative payment options outside Google Play, and from directing them to those options. The Commission said Google's practices stifled competition and innovation.
The Penalty and Compliance
The €890 million fine represents less than 1% of Alphabet's $112.1 billion quarterly profit. Google must comply within 60 days or face daily penalties of up to 5% of its global daily turnover. The company's general counsel, Kent Walker, called the decision 'product degradation' and said it would harm European users. The Commission noted that the fine amount reflects the severity and duration of the violations.
Political and Trade Context
European officials denied the timing was linked to expected US tariffs. The US has previously fined Google for similar antitrust violations, with a 2024 ruling declaring Google a monopolist. The DMA, enacted in 2022, has already led to fines against Meta (€200 million) and Apple (€500 million). Observers await the US response, as lawmakers have urged President Trump to take 'decisive actions' against EU regulation of American tech firms.
What's Next
Google has 60 days to comply with the EU decision, with potential daily fines if it fails. It remains unclear whether the US will impose retaliatory tariffs or other measures in response to the fine.
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EU fines Google $1 billion for search, payment violations
