The European Commission fined Google a combined €890 million on 23 July for breaching the Digital Markets Act, the EU law that sets conduct rules for the largest online platforms. It is the first DMA penalty against the company.
The fine comes in two parts. Google was fined €460 million for favouring its own services in Search, and €430 million for Play Store rules that limited how app developers could point users to offers elsewhere.
What the Commission found
In Search, regulators concluded that Google gave its own specialised services, such as shopping, hotels, transport and sports results, more prominent treatment than competing services. That included higher placement, richer visual formats and extra filters that rivals could not get on equal terms.
In Google Play, the Commission found that Google restricted developers from steering users to cheaper or alternative purchasing options outside the store, one of the core practices the DMA was written to stop.
The 60-day clock
Google was given 60 days to bring its services into line. If the Commission concludes it has not done so, it can impose periodic penalty payments of up to 5% of Google’s average daily worldwide turnover, a far larger sum over time than the fine itself.
The Commission also noted progress. It said Google had already rolled out changes to its Play steering terms and described its proposed Search changes as substantial progress towards compliance. It added that dialogue would continue on how the rules apply to AI Overviews and AI Mode, Google’s AI-generated answers in Search.
The fine is the headline. The periodic penalties are the leverage.
Google’s response
Google objected to the decisions. The company argued that complying means removing Search features that European users value, and said it was reviewing the decisions and considering an appeal. A challenge before the EU General Court would not, on its own, suspend the obligation to comply.
Why it matters beyond Google
The DMA designates a handful of companies as gatekeepers and applies the same obligations to each of them. How the Commission treats AI features inside search, still under discussion here, will shape what every designated platform can build into its core services in the EU.
What to watch
- Whether the Commission considers the 60-day deadline met.
- A formal appeal by Google at the General Court.
- The outcome of talks on AI Overviews and AI Mode.
