EU Fines Google $1 Billion for Prioritizing Its Own Search Services

The European Commission has imposed a $1 billion fine on Google, accusing the tech giant of violating competition laws by steering users toward its own services. The penalty stems from an investigation that found Google abused its dominance in the EU’s search and app store markets, breaching the bloc’s Digital Markets Act.

The EC has ordered Google to stop prioritizing its own offerings,including shopping, accommodations, transport, and flights,in search rankings. Additionally, Google must permit app developers to communicate and conduct transactions with users outside the Play Store, where the company currently takes a commission on sales.

“The best products should succeed because they’re better, not because they’re owned by the company running the search engine,” says Teresa Ribera, an executive vice president at the EC. “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.”

Google has indicated it may appeal the decision. “This isn’t fair competition; it’s product degradation driven by a small group of self-serving complainants, with European businesses and consumers taking the hit,” says Kent Walker, president of global affairs at Google.

Tech industry trade groups have criticized the aggressive enforcement of the Digital Markets Act. “Reducing the quality of what Europeans have access to is not a positive outcome,” Daniel Friedlaender, senior vice president at trade organization CCIA Europe, tells WIRED.

This is not the first major financial blow to Google from the EU. Over the past decade, the Commission has issued several multi-billion-dollar fines for antitrust violations. In early July, a European court upheld a record $4.1 billion penalty from 2018, tied to agreements that forced phone makers to pre-install Google Search and Chrome.

“Certainly, the stakes are really high for companies. How they are ranked affects their businesses a great deal,” says Kathryn McMahon, an associate professor of law at the University of Warwick. “The way EU competition law looks at it, firms in a dominant position,like Google,have a special responsibility not to distort competition.”

In response to the latest complaints, Google has proposed changes to how it manages the Play Store and displays its products in search results. The EC has described these steps as “progress towards compliance.”

The fine comes amid rising tensions between the U. S. and Europe over tech regulation. Recently, President Donald Trump threatened to impose steep tariffs on European countries that restrict American technology companies. The White House did not respond to a request for comment.

McMahon sees the penalty as a defiant signal. “It’s quite a strong response, in the context of the transatlantic complaints,the way that Trump can leverage fines. It shows the commission is willing to be tough.”