European Commission imposes 890 million euro DMA fine on Google

The European Commission has fined Google a total of 890 million euros for violating its obligations under the Digital Markets Act (DMA). At the heart of the decision are allegations that the company gave its own services an advantage in search results and restricted app developers from informing users about alternative options.

The sanction, announced following an investigation launched by the Commission in March 2024, is considered one of the most notable steps in the EU's new digital competition regime for major technology companies. The DMA aims to limit the power of platforms in the position of "gatekeepers" in digital markets and to create fairer conditions for competing services.

A 460 million euro portion of the fine is based on the assessment that Google systematically prioritized its own services in its search engine. According to the Commission, the company made services such as Google Shopping, Google Hotels, and Google Flights more visible in search results while positioning rival platforms lower down.

This approach, known in EU competition law as "self-preferencing," had previously been at the center of the agenda with the Google Shopping case. In the file, which dates back to an investigation launched in 2010, the Court of Justice of the European Union upheld the Commission's approach in 2024. The DMA, meanwhile, brought this concept directly into the legal framework, paving the way for faster intervention in similar practices.

RESTRICTIONS ON APP DEVELOPERS

The remaining 430 million euro portion of the sanction is linked to Google's rules for app developers. The Commission evaluated complaints that developers were prevented from directing users to cheaper offers or alternative payment methods outside the Google ecosystem.

The decision is not limited to a fine. The Commission has asked Google to end the non-compliance, treat third-party services on non-discriminatory terms, and allow app developers to communicate freely with users.

Google has 60 days to comply with the decision. It is stated that if the company does not take the necessary steps within this period, it could face periodic penalty payments of up to 5 percent of its worldwide turnover.

Google, for its part, argues that its services are designed to improve the user experience. The company is of the opinion that mandatory changes to search results or app store policies could harm the digital ecosystem in Europe.

This is not fair competition; it is a process of deliberately degrading the quality of products, triggered by a small group of complainants looking out for their own interests. Businesses and consumers in Europe are paying the price. Regulation should improve products, not make them worse.

It was reported that the company has begun testing some changes to its search service and app store, and that the Commission continues to monitor these steps. While Brussels sees some of the regulations as significant progress toward compliance, it will be audited whether the final compliance process has been completed.

TRANSATLANTIC TENSION DIMENSION

The decision was announced at a time when trade issues between Washington and Brussels are back on the agenda. While it is stated that the administration of US President Donald Trump is preparing for new customs tariffs, the EU's digital regulations targeting American technology companies have long been a subject of criticism in Washington.

The Trump administration had previously described the EU's digital rules as regulations that cause commercial discomfort and had occasionally evaluated the fines imposed on tech giants on the same plane as customs tariffs. For this reason, it is stated that the high-value sanction against Google could create a new debate not only in terms of competition law but also in terms of transatlantic relations.

Last year, the Turnberry agreement, which aimed to reduce trade disputes between Brussels and Washington, came to the fore. Within this framework, it was reported that the EU committed to lifting customs duties on a significant portion of US industrial products and accepting a 15 percent US tariff to be applied to its own exports.

However, it is reported that the US administration is looking for different legal grounds for the new tariff regime and is evaluating additional taxes focusing on topics such as forced labor and overcapacity. This picture makes the economic and political effects of the EU's digital market sanctions more visible.

Whether Google will appeal the Commission's decision is not yet clear. However, the decision has emerged as an important file demonstrating the EU's will to implement tougher and faster sanctions against major technology platforms under the DMA.