European Commission Punished the global technology company Google (Alphabet) (NASDAQ:GOOG) under the Digital Markets Act (DMA) for allegedly favoring its own services over competitors in search. Google was fined 890 million euros (over $1 billion). The EU claims that Google is hiding alternative or potentially cheaper services from users.
Google had previously been notified that it might become non-compliant in the EU in March 2025.
DMA wants big technologies to not treat their own services more favorably when ranking and “Fair and non-discriminatory conditions for such ranking.”
The European Commission ordered Google to change its operations; In particular, Google must implement the following measures:
- Treat third-party services included in Google’s search results in a fair and non-discriminatory manner by referring to Google’s own services; and
- Allow app developers who distribute their apps through the Google Play Store to freely communicate, make offers, and enter into agreements, both technically and contractually, with users not only inside but outside the Google Play app store.
Google must comply with the EU’s demands within 60 days; Otherwise, penalty payments will increase by up to 5%.
Teresa RiberaThe Commission’s Vice-President for Clean, Fair and Competitive Transition said Google had fallen short on compliance under the DMA.
“Today, we have taken decisive but balanced enforcement action confirming these violations. The best products must succeed because they are better, not because they belong to the company operating the search engine. And European consumers have the right to be informed about where to sign up for the best offers by app developers, even if the app store owner does not make the cut. This is the promise of the DMA, which protects fairness, choice and innovation in digital markets for the benefit of all European citizens.”
Google responded to the EU’s claims, stating that the DMA would disrupt everyday products and that to comply they would have to remove the search features that Europeans use.
“This is not fair competition; this is product degradation caused by a small group of self-serving complainers, with European businesses and consumers taking a hit. Regulations should improve products, not make them worse.”
The Trump administration views the DMA as a trade barrier that discriminates against US technology firms. Some Republicans in Congress have called for the White House to take action against the DMA because it is a form of “economic exploitation” and “regulatory pressure” technique.
There is a meme circulating in the US: US innovates, EU regulates (and China steals). This is part of the perspective of some that Europe is trying to fund its services by taxing or penalizing successful U.S. firms for failing to create an innovation-driven economy.
