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EU slaps Google with $1 billion antitrust fine over Play Store and Search practices

European Commission says Google unfairly favoured its own services on Search and the Play Store, violating the Digital Markets Act; the company calls the decision harmful to businesses and consumers.

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Google down (Photo: Reuters)
Google down (Photo: Reuters)
FP Business Desk|Jul 23, 2026, 17:30:21 IST

The European Union on Thursday imposed an 890 million euro ($1 billion) antitrust fine on Google, accusing the tech giant of using its dominance in Google Search and the Google Play Store to favour its own services and apps over rivals, in violation of the bloc's digital competition rules.

The penalty marks another major regulatory action by the European Commission against Big Tech companies as Brussels continues its aggressive enforcement of the Digital Markets Act (DMA) aimed at curbing anti-competitive practices by dominant digital platforms.

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According to the Commission, Google's conduct limited competition by steering consumers toward its own services while restricting rival app developers and businesses from competing on equal terms.

"The best products should succeed because they're better, not because they're owned by the company running the search engine," Teresa Ribera, Executive Vice President for Clean, Just, and Competitive Transition at the European Commission, said while announcing the decision. She added that consumers should be able to access the best offers from app developers, regardless of whether the app store operator earns a commission.

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Google strongly rejected the ruling

Kent Walker, President of Global Affairs at Google, described the decision as "product degradation driven by a small group of self-serving complainants" and warned that it would hurt European businesses and consumers.

He argued that compliance with the DMA would force Google to remove features such as real-time pricing and direct availability for hotels, flights, and restaurants from Search, while weakening safety protections on the Play Store.

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The latest penalty comes shortly after Google lost its appeal against a €4.1 billion ($4.5 billion) EU antitrust fine related to the dominance of its Android mobile operating system.

The EU has intensified scrutiny of major technology companies despite criticism from US President Donald Trump, who has repeatedly opposed the bloc's digital regulations and threatened retaliation if American companies are disproportionately targeted.

Under the Digital Markets Act, the European Union classifies major technology platforms—including Alphabet, Amazon, Apple, Meta, Microsoft, and ByteDance—as "gatekeepers" with special obligations to ensure fair competition in digital markets.

The Commission reiterated that businesses operating within the EU have the right to compete on equal terms and consumers should be free to choose cheaper and better alternatives without being steered toward services owned by dominant platforms.

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First Published:Jul 23, 2026, 17:30:21 IST
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