Google is facing a $1 billion fine over Play Store and Search violations

Europe’s Digital Markets Act (DMA) came into effect a couple of years ago to curb the dominance of major tech corporations like  Google, Amazon, Apple, and Meta. The legislation is designed to ensure a level playing field for all players in the market regardless of their size. It didn’t take long for the European Commission to announce investigations into Google, along with other big tech corporations, for non-compliance. The investigation may now have reached its conclusion, as the regulator has just slapped a massive fine on the search giant.

In a statement today, the European Commission said it was fining Google €890 million (~$1 billion) over two separate violations related to Search (€460 million) and the Play Store (€430 million).

For Google Search, the regulator found that the company gives “preferential treatment” to its own services, including in shopping, hotels, travel, and sports results, over third-party services that offer a similar product.

The Commission also points to Google offering “enhanced visuals and filters” and a prominent spot at the top of the results page for its own services, giving little to no visibility to other providers.

For some background on the Play Store violations, Google is compelled under the DMA to allow app developers to market their products or promotions outside the Play Store, such as in a third-party app store or website. The Commission found that not only does Google restrict app developers from using alternative means to market or sell their products, but the company also makes it financially difficult for developers through exorbitant fees for steering users away from the Play Store.

As for what comes next, the regulator has given Google 60 days to comply with the decision, or risk facing “periodic penalty payments” of up to 5% of the company’s global revenues. Despite these stern words, the European Commission notes that Google has continued to engage with the regulators, and is also actively testing changes to Google Search.

We’re also learning that the Commission has heard proposals from Google on applying these changes to AI Mode and AI Overviews in Search. Google can appeal the regulator’s decision, with the company saying in a statement to CNN and other publications that it is currently evaluating that process.

“This implementation of the DMA continues to break everyday products. To comply, we are having to strip away real-time Search features Europeans love — like instant pricing and direct availability for hotels, flights, and restaurants — and dismantle safety protections on Google Play,” said Kent Walker, president of global affairs at Google.

“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,” Walker added.

In the meantime, we’ve reached out to Google for further comment on this development and will update this post with anything we’re able to learn.