EU slaps Alphabet with €890 million fine over Google Search favoritism and Play Store restrictions

The European Commission has penalized Google’s parent company Alphabet with a total of €890 million (approximately $1 billion) for two alleged breaches of the bloc’s Digital Markets Act.

The Commission issued two penalties totaling €890 million. One fine of €460 million addresses the company’s practice of giving preferential treatment to its own Shopping, Hotels, and Flights services within Google Search results. The second fine of €430 million targets rules in the Play Store that prevented Android developers from directing users toward cheaper alternative payment options.

Google must change its policies within 60 days. The company is required to treat third-party services “in a fair and non-discriminatory manner” in Search results. For the Play Store, it must allow developers to promote their offers to users both inside and outside the store, or risk additional periodic penalty payments.

The ruling follows a non-compliance investigation opened more than two years ago. It comes after a preliminary finding in March 2025 and an extension granted in May 2026, when the Commission determined that a prior proposal from Google “is simply not strong enough.” The company had tested adjustments including removal of the Google Flights widget for EU users and improved visibility for third-party comparison sites.

Google has objected to the EU’s demands on both products. In May the firm told Reuters that its Search modifications represent “the biggest downgrade in the product’s history, creating a second-rate experience for Europeans to the benefit of a few self-interested complainants.” On the Play Store side, Google has argued that the DMA forces it to remove “legitimate safeguards that protect users’ security and safety,” although it later revised certain terms following consultations with regulators.

This is not Google’s first EU antitrust penalty. The company was previously hit with a €2.42 billion fine in 2017 for a similar breach involving illegal advantage for its comparison shopping service. The DMA targets the largest “gatekeeper” companies providing core digital services in Europe and requires them to act fairly without abusing market dominance. The maximum fine for breaching DMA rules is 10 percent of the company’s global annual turnover.