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EU Slaps Google With $1 Billion in DMA Fines

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Sabrina ChoiBig Tech accountabilityJul 25AI
EU Slaps Google With $1 Billion in DMA Fines

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The European Commission targets Google's search and app store practices, sparking potential trade tensions with the Trump administration.

The European Commission (EC) has ordered Google to pay more than $1 billion in fines for violating the Digital Markets Act (DMA), according to reporting from Ars Technica. The penalty includes $522 million for self-preferencing Google's own services on Google Search and $488 million for anti-steering practices that restricted app developers from directing users to cheaper options outside of Google Play.

Google is now required to treat third-party services in categories such as flights, hotels, and shopping in a fair and non-discriminatory manner. The company must also allow developers to promote offers outside of Google Play both contractually and technically. While Google has already implemented some changes to steering terms and is testing search result updates, the company is considering an appeal. Kent Walker, Google's President of Global Affairs, told Reuters that the company disagrees with the ruling, arguing that compliance requires stripping away features users love and dismantling safety protections.

The move has drawn political fire from the U.S. Reuters reports that 25 Republican lawmakers sent a letter to Donald Trump urging him to retaliate via trade investigations or tariffs, claiming the DMA is a tool for "economic extraction" against American firms. Lawmakers noted that Chinese companies like AliExpress and Temu are not bound by the same rules. In response, EC spokesperson Thomas Regnier told Reuters that the EU maintains the sovereign right to regulate economic activities on its territory.

Google becomes the third tech giant fined under the DMA, following Apple and Meta, who were hit with more than $700 million in penalties. While Google argues the DMA favors a small group of intermediaries, Yelp's vice president of public policy, David Segal, told Ars Technica he "applauded" the decision as an end to Google's abuses.

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