EU fines Google $1 billion over search favoritism

The European Union has fined Google €890 million ($1 billion) for abusing the dominance of its search engine “gatekeeper” position, according to a European Commission press release. The decision could further strain relations with the United States, whose Trump administration has threatened retaliation against what it calls the EU’s “unfair” trade policies.

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Why the EU fined Google

EU regulators said Google used its dominant search position to promote its own shopping, travel, games and other services. Its products appeared prominently in search results while competing services were pushed farther down, the Commission said.

The Commission also found that Google prevented developers from telling Google Play users about alternative payment options that could have reduced Google’s fees. Both practices violate the Digital Markets Act (DMA), passed in 2022 to stop major technology platforms from abusing their market power.

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“The best products should succeed because they’re better, not because they’re owned by the company running the search engine.”

Under the DMA, gatekeepers must rank their own services no more favorably than third-party services and apply transparent, fair and non-discriminatory ranking conditions.

Google faces a 60-day deadline

Google has 60 days to comply with the decision or face additional penalties of up to 5 percent of its global turnover. General counsel Kent Walker said the ruling would harm European users.

“This isn’t fair competition; it’s product degradation. Regulation should improve products, not make them worse.”

The fine amounts to less than 1 percent of Google’s recently announced $112.1 billion quarterly profit. European officials said the timing was unrelated to reports that President Trump was expected to introduce new tariffs on European goods.

US lawmakers have urged the president to take “decisive actions” against EU regulation of American technology companies. US regulators have also pursued Google over similar anti-competitive conduct: following a 2020 Department of Justice lawsuit, the company was ordered last year to hand over search data to rivals. In 2024, the presiding judge said, “Google is a monopolist, and it has acted as one to maintain its monopoly.”

The penalty is smaller than Google’s previous EU sanctions: a $4.7 billion Android antitrust fine from 2018, whose final appeal Google lost earlier this month, and a $2.8 billion shopping-search penalty from 2017, whose final appeal it lost in 2024.