EU fines Google $1 billion for search bias and app store steering

The European Commission has imposed a €890 million fine (approximately $1 billion) on Alphabet for two violations of the Digital Markets Act, targeting how Google Search displays results and how the Play Store restricts developers from directing users to alternative payment systems.

The penalty splits into two components: €460 million for giving preferential placement to Google's own Shopping, Hotels, and Flights services in search results, and €430 million for Play Store policies that prevented Android developers from promoting alternative payment options that might offer lower fees.

Compliance deadline and required changes

Google has 60 days to implement policy changes or face additional periodic penalties. For Search, the company must treat third-party services "in a fair and non-discriminatory manner." For the Play Store, Google must allow Android developers to freely promote offers to users both within and outside the app marketplace.

The ruling comes more than two years after the Commission opened its non-compliance investigation, following a preliminary finding in March 2025. According to The Verge, which first reported the details, the Commission granted Google an extension in May 2026 after determining an earlier proposal from the company "is simply not strong enough."

Google's compliance attempts and pushback

Google tested multiple changes to its Search services attempting to meet DMA requirements, including removing the Google Flights widget for EU users and enhancing links to third-party comparison sites through a revised search layout. The company told Reuters in May that these modifications "represent the biggest downgrade in the product's history, creating a second-rate experience for Europeans to the benefit of a few self-interested complainants."

Regarding Play Store requirements, Google has consistently argued that opening app distribution poses security risks. In a blog post last year, the company stated "the DMA is making it difficult to protect users from scams and malicious links on Android by forcing us to remove our legitimate safeguards." Despite objections, Google revised fees and developer restrictions following consultations with the Commission and other experts, changes the Commission describes as "good progress towards compliance."

Why it matters

This enforcement action demonstrates how the EU's Digital Markets Act creates binding obligations with substantial financial consequences for major technology platforms. The DMA allows fines up to 10 percent of global annual revenue—which would reach $40 billion for Google based on its reported $400 billion in 2025 revenue. The ruling establishes precedent for how regulators will interpret "fair and non-discriminatory" treatment requirements, potentially influencing how other gatekeeper platforms structure their services. Google also faces related challenges in the US, where Epic Games successfully sued over Play Store in-app purchase fees, forcing the company to carry rival Android app stores.

This isn't Google's first EU antitrust penalty for search practices—the company received a €2.42 billion fine in 2017 for giving its comparison shopping service illegal advantages over competitors.

European Commission Executive Vice-President Teresa Ribera framed the action around consumer choice: "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."

These details were first reported by The Verge.