Google fined €890m by EU regulators for allegedly abusing its market power by favouring its own apps and services over those of rivals, according to BBC reporting. The penalty, worth £759m, marks the first major enforcement action against the company under the European Union’s Digital Markets Act (DMA), a law designed to curb the power of the world’s largest technology firms.
The European Commission said Google’s practices limited consumer choice and gave the company’s own services an unfair advantage over competitors, the BBC reported. The total fine consists of two separate penalties tied to distinct breaches of the DMA.
The European Union’s Digital Markets Act applies to major online platforms designated as “gatekeepers” and is intended to ensure that businesses and consumers have fairer choices when using digital services. Google’s position as one of the world’s largest technology companies has made its compliance with the rules a major focus for European regulators. The latest decision could also have wider implications for how large technology companies structure search rankings, app marketplaces and commercial services across the European market.
The ruling highlights the growing regulatory pressure facing major technology companies in Europe, where authorities have increasingly sought to limit practices that could restrict competition or disadvantage smaller rivals. For Google, the decision adds to a long-running series of regulatory disputes involving its search engine, advertising business, mobile operating system and app marketplace. The company has previously challenged several European competition decisions, meaning the latest ruling could potentially lead to further legal proceedings if Google decides to contest the Commission’s findings in court.
The outcome is also being closely watched by competitors and businesses that depend on Google’s platforms to reach consumers. Changes to search rankings and Play Store rules could affect how companies promote their products, distribute applications and offer services to customers. At the same time, Google maintains that some regulatory requirements could reduce useful features and weaken protections for users. The debate is therefore expected to continue as regulators balance stronger competition rules with the need to preserve innovation and consumer safety in the digital economy.
A €460m penalty was imposed after the Commission found that Google favoured its own services in helping people book flights and hotels, placing them above competitors in search results, according to the BBC. A further €430m fine was issued over Google’s Play Store rules, with regulators saying the company did not allow users to be shown cheaper offers available outside its own marketplace.
Google criticised the decision, arguing that the EU’s requirements could damage services relied on by millions of European users. The company’s president of global affairs, Kent Walker, said Google is being forced to strip away real-time search features that Europeans value, including instant pricing and direct availability for hotels, flights and restaurants, and to dismantle safety protections on Google Play, the BBC reported. Walker described the ruling as unfair to the company.
EU officials rejected that characterisation, saying the measures are necessary to stop dominant platforms from disadvantaging rivals. EU competition chief Teresa Ribera said companies should succeed because of the quality of their products rather than their market position, according to the BBC. EU technology chief Henna Virkkunen said the decision was intended to ensure greater competition and allow other companies to innovate.
Zach Meyers, director of research at the Centre on Regulation in Europe, told the BBC that the Commission had delayed finalising its decision against Google, a delay he said was likely driven by a desire not to upset relations between the EU and the United States. However, as US President Donald Trump repeatedly threatened or imposed new tariffs, the Commission came to view its cautious approach as ineffective and proceeded with the fine, Meyers said.
Meyers added that the decision reflects a growing view among EU officials that Trump’s unpredictability, and his willingness to depart from his own agreements, means the EU has little to gain from treading carefully and much to lose in terms of regulatory credibility, according to the BBC.
Google has 60 days to comply with the Commission’s requirements or challenge the decision in court, the BBC reported. The company has a lengthy history of disputes with European regulators and has previously been fined billions of euros in separate competition cases, including a €4.1bn penalty over its use of Android to block rivals.
The European Commission, which oversees enforcement of the DMA, has taken a series of actions against major technology and e-commerce firms in recent months, including a record €550m fine against AliExpress for allowing the sale of illegal goods. News that Google fined €890m by EU regulators comes as the Commission continues to expand its scrutiny of dominant digital platforms, even as major companies such as Amazon continue to report strong growth, including Amazon Business’s $60 billion in annualised sales. Further details on the Commission’s enforcement role are available through the European Commission’s official website.
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