Google Hit With €890 Million DMA Fine as EU Targets Search Bias & Play Store Restrictions

Key Takeaways

• DMA Enforcement: The European Commission fined Google a combined €890 million ($1.04 billion) for violating the Digital Markets Act through unlawful self-preferencing in Google Search and anti-steering restrictions in Google Play.
• Search Self-Preferencing: Regulators found Google gave its own shopping, hotel, transport and sports services more prominent placement and enhanced presentation than competing third-party services.
• Google Play Restrictions: The Commission concluded Google prevented app developers from freely directing users to alternative purchasing channels and imposed steering-related fees that exceeded what the DMA permits.
• Compliance Deadline: Google has 60 days to comply with the Commission's orders or face periodic penalty payments of up to 5% of its total worldwide turnover.

Deep Dive

In two decisions under the European Union's Digital Markets Act (DMA), the Commission fined Google a combined €890 million, finding that the company unlawfully favored its own services in Google Search while also preventing app developers from freely steering customers toward alternative purchasing channels outside Google Play. The penalties amount to €460 million for Google's search practices and €430 million for its Play Store policies.

The cases cut to the heart of what the DMA was written to address. The law does not prohibit success or scale. It challenges the advantages that arise when the company operating the marketplace also competes inside it.

According to the Commission, Google crossed that line in Search by giving its own services (including shopping, hotels, transport and sports results) a level of prominence that competing businesses could not obtain. Google's products appeared at the top of search pages and benefited from enhanced visual formats and filters, while similar third-party services remained further down the page, presented with less visibility and fewer features.

The Commission's finding is less about where Google's services appeared than why they appeared there. Under the DMA, designated gatekeepers must apply transparent, fair and non-discriminatory conditions when ranking services. The Commission concluded Google instead gave itself advantages unavailable to rivals simply because it owned both the search engine and the competing products.

The second decision turned to Google Play, where the Commission found a different expression of the same underlying problem. The DMA gives app developers the right to tell customers about alternative ways to purchase digital goods and services, including offers available through websites or competing app stores, which may carry lower prices because they avoid platform commissions. Developers must also be free to conclude those transactions outside Google's ecosystem.

The Commission found Google had not met that obligation. It said the company restricted developers' ability to communicate those alternatives and maintained steering-related fees whose level and duration exceeded what regulators consider compatible with the DMA. While the law allows Google to charge for acquiring a new customer through Google Play, the Commission concluded the company had extended those charges beyond what the legislation permits.

The decisions do more than impose financial penalties. They order Google to change its conduct. For Search, Google must treat competing services on terms that are fair and non-discriminatory relative to its own. For Google Play, developers must be able (both technically and contractually) to communicate with users, promote offers and conclude contracts outside the Play Store without the restrictions identified by the Commission.

Brussels acknowledged that Google's compliance efforts have not stood still. Following what the Commission described as a constructive dialogue, the company has begun testing changes to how it displays its own services for free products such as shopping, hotels and flights, alongside adjustments affecting shopping advertisements and sports-related content. Regulators are also reviewing Google's proposals for AI Overviews and AI Mode, suggesting that the conversation between the company and the Commission is already moving toward the next generation of search rather than remaining confined to the last.

Google has likewise rolled out changes to its Play Store steering terms. The Commission described those measures as meaningful progress, though not enough to alter Tuesday's conclusions. They will instead be evaluated as part of Google's effort to comply with the cease-and-desist order now in force. The company has 60 days to bring its practices into compliance or face periodic penalty payments of up to 5% of its total worldwide turnover.

The investigations stretch back to March 2024, six months after Google was designated a gatekeeper under the DMA. In March 2025, the Commission informed the company of its preliminary view that it was violating the legislation. Google exercised its rights of defense throughout the proceedings, responding to the Commission's findings before the final decisions were adopted following what regulators described as an extensive investigation and consultation with market participants.

In announcing the penalties, Executive Vice-President Teresa Ribera said the Commission had taken "decisive yet balanced enforcement action," arguing that better products should prevail because they are better, not because they belong to the company controlling the search engine. Executive Vice-President Henna Virkkunen said the decisions demonstrated the Commission's willingness to use the DMA to protect competition and innovation, adding that Google must now end the conduct and refrain from repeating it.

‍The GRC Report is your premier destination for the latest in governance, risk, and compliance news. As your reliable source for comprehensive coverage, we ensure you stay informed and ready to navigate the dynamic landscape of GRC. Beyond being a news source, the GRC Report represents a thriving community of professionals who, like you, are dedicated to GRC excellence. Explore our insightful articles and breaking news, and actively participate in the conversation to enhance your GRC journey.