Google DMA fine tops $1 billion as EU orders Search and Play changes

The Google DMA fine has now passed $1 billion in dollar terms, after the European Commission penalized Google for conduct tied to Search and Google Play. The decision matters beyond Google because it is the third major Digital Markets Act enforcement action against a large US tech company, and it arrives as Republican lawmakers press President Donald Trump to push back against the EU’s tech rules.

The Commission said Thursday that Google must pay $522 million for favoring its own services in Google Search and $488 million for restrictions that limited app developers’ ability to point users to cheaper options outside Google Play. The agency gave Google 60 days to change its practices or face additional daily penalties.

For Search, the Commission said Google must treat third-party services that appear in results fairly against its own offerings in areas including shopping, hotels and flights. For Google Play, the company must allow developers, through both contract terms and technical implementation, to sign up users and promote offers outside the app store.

What did the EU fine Google for?

The EU said Google breached the Digital Markets Act in two ways: by preferring its own services in Search results and by using anti-steering practices in Google Play. In practical terms, the Commission wants rival travel, shopping and other services to get fair treatment in Search, while app developers must be free to tell users where they can buy or subscribe outside Google’s store.

Google has not disclosed how much revenue is affected by the required changes. The Commission also did not say what additional daily fines would total if Google misses the 60-day deadline.

Google can challenge the ruling. Kent Walker, Google’s president of global affairs, told Reuters that the company disagrees with the decision and is considering an appeal. Walker argued that compliance would force Google to remove real-time Search features used in Europe, including pricing and availability for hotels, flights and restaurants, and would weaken Google Play safety protections.

The Commission said Google has already made changes to its steering terms and called that progress toward compliance. It also said Google has tested changes to how it shows its own services in Search for shopping, hotels and flights, as well as changes to shopping ads and content-related services such as sports. Google has also said it will voluntarily adjust AI Overviews and AI Mode to align with the Commission’s expectations on self-preferencing and anti-steering.

Why is the Google DMA fine now a US-EU fight?

The enforcement action has become part of a wider trade dispute. Reuters reported that 25 Republican lawmakers urged Trump to respond to the expected Google penalty with trade investigations, arguing that the DMA is being used against American companies as a tool of economic pressure. The letter said EU access to the US market is not guaranteed and could be limited if the bloc continues what the lawmakers described as discriminatory digital policies.

The pressure follows earlier DMA penalties against Apple and Meta, which together totaled more than $700 million. The lawmakers also argued that Apple and Meta should not be treated as DMA gatekeepers when Chinese companies such as Temu and AliExpress are not subject to the same rules, according to Reuters.

Thomas Regnier, a Commission spokesperson, told Reuters that the EU has the sovereign right to regulate business activity in its territory, including digital regulation, and said the bloc would enforce its rules fairly and without discrimination. He also said the EU sees room for cooperation with the US on digital issues while preserving its regulatory autonomy.

Yelp backed the Commission’s action. David Segal, Yelp’s vice president of public policy, said Google has chosen to reduce functionality rather than give competitors equal footing. Teresa Ribera, the Commission official overseeing the DMA agenda, said products should win on quality rather than ownership by the company running the search engine, and that consumers should be told when developers can offer better deals outside an app store.

This story draws on original reporting from Ars Technica.