Google fined €890M for Digital Markets Act violations in search and payments
The first major DMA enforcement action establishes precedent for how EU regulators will police platform self-preferencing and payment steering restrictions.
Two separate violations under new framework
The European Commission issued two penalties totaling €890 million to Alphabet for Digital Markets Act breaches. A €460 million fine addresses Google giving preferential treatment to its own products in search results. The remaining €430 million penalizes restrictions that blocked Android app developers from directing users to alternative payment systems outside the Play Store.
These represent the first significant enforcement actions under the DMA, which took effect in March 2023 with specific obligations for designated 'gatekeeper' platforms. The law prohibits self-preferencing in search and mandates that platforms allow developers to inform users about alternative purchasing options.
Payment steering prohibition challenged
The payment-related penalty stems from Google policies that prevented Android developers from notifying users about purchasing options beyond the Play Store's in-app payment system. This practice forced developers to use Google's payment infrastructure, which charges commissions of up to 30 percent on transactions.
Similar restrictions have faced legal challenges globally. Apple modified its App Store policies in the United States following a lawsuit by Epic Games, though those changes remain limited in scope compared to EU requirements.
Search self-preferencing documented
The Commission's investigation found that Google systematically positioned its own services—including Shopping, Maps, and Flights—more prominently in search results than competing offerings. This practice gave Google products visibility advantages regardless of relevance or quality comparisons with alternatives.
The DMA specifically requires that gatekeepers treat their own services equally with third-party options in ranking and display. Google has 60 days to demonstrate compliance changes or face additional periodic penalties.