Google has been fined €890 million—about $1.01 billion US or $1.43 billion Canadian—after the European Commission found that its Search and Google Play practices breached the European Union’s Digital Markets Act.
The July 23, 2026 decision covers preferential treatment for Google-owned services in search results and restrictions preventing app developers from freely directing customers to potentially cheaper offers. Google has 60 days to comply and is considering an appeal.
Why was Google fined €890 million?
The penalty is divided between two Commission decisions:
- €460 million: Google allegedly favoured its shopping, hotel, transport and sports services in Search.
- €430 million: Google Play allegedly restricted developers from promoting and completing purchases through websites and competing app stores.
Google Search was designated as a DMA gatekeeper in September 2023. The law requires gatekeepers to apply fair, transparent and non-discriminatory conditions when displaying their services beside competing products.
Regulators found that Google placed its services prominently, including near the top of results, and gave them enhanced designs and filters not equally available to competitors. The ruling does not require Google to remove Shopping, Hotels, Flights or sports results, but it could change how those features appear in Europe.
What was wrong with Google Play’s rules?
The Google Play finding concerns “steering”—the ability of developers to inform customers about subscriptions or digital products available through another website or app store.
The Commission found that Google limited how developers could communicate, promote and complete external transactions. Although Google may receive a reasonable fee for helping a developer acquire a customer, regulators said its steering-related fees and the period during which they applied exceeded what the DMA permits.
What must Google change within 60 days?
Google must treat competing services in Search fairly, remove discriminatory presentation advantages and allow Play Store developers to promote and complete purchases outside Google Play.
The European Commission’s official Google decision says non-compliance could expose the company to periodic penalties of up to 5% of Alphabet’s average daily worldwide turnover.
The DMA also allows fines of up to 10% of a gatekeeper’s worldwide annual turnover, rising to 20% for repeated violations.
What could change for Google users?
European Search pages for shopping, hotels, flights, restaurants, transport and sports could be redesigned. Competing comparison services may receive greater visibility, while some Google panels, filters and direct-availability features could change.
Google is already testing revisions to shopping, hotel and flight results, shopping advertisements and sports content. The Commission described parts of this work as substantial progress but has not declared Google fully compliant.
Google Play users may see more links to external subscription or payment pages. Those options could cost less, but developers are not required to pass any commission savings to customers.
People purchasing outside Google Play should check who handles the payment, cancellation and refund. Google argues that external transactions could weaken safety protections, while the EU says security can coexist with greater consumer choice.
Will AI Overviews and AI Mode be affected?
Google has proposed applying the ruling’s principles to AI Overviews and AI Mode. Regulators will examine whether AI-generated answers give Google-owned shopping, travel or other services greater prominence than comparable third-party providers.
The issue forms part of a wider debate over Google AI Search rules affecting publishers, attribution and competition. No separate penalty involving Google’s AI features was announced on July 23.
Will Google appeal?
Google disputes the findings and may challenge the decisions in court. Kent Walker, president of global affairs at Google and Alphabet, said compliance could remove useful real-time prices and direct availability for hotels, flights and restaurants.
The company also argues that the required changes could reduce product quality for European consumers. An appeal could extend the dispute but would not automatically suspend the 60-day compliance order.
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How did the investigation develop?
- September 2023: Google Search was designated a DMA gatekeeper.
- March 25, 2024: The Commission opened its two investigations.
- March 19, 2025: Google received preliminary findings.
- July 23, 2026: Two fines totalling €890 million were announced.
The Commission said its decisions followed feedback from market participants, Google’s written response and extensive discussions with the company.
Could the ruling trigger US retaliation?
The case may increase tension between Washington and Brussels. Twenty-five Republican lawmakers reportedly urged President Donald Trump to consider Section 301 of the Trade Act of 1974, which can support tariffs or other action against alleged unfair trade practices.
They questioned why Apple, Meta and Amazon are DMA gatekeepers while Temu and AliExpress are not. Designation depends on legal criteria including European user numbers and a company’s market position.
The ruling follows broader European enforcement against global platforms, including the separate AliExpress €550 million EU fine. Apple and Meta also received DMA penalties in 2025.
No US retaliation was announced with the Google decision. Regulators will now assess Google’s Search tests, Play Store terms and proposed treatment of AI-generated results while the company decides whether to appeal.
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