EU hits Google with $1 billion fine over its Play app store and search

Google had recently lost its appeal of a $4.5 billion antitrust fine imposed by the EU for throttling competition and reducing consumer choice through the dominance of its mobile Android operating system.

To comply, we are having to strip away real-time Search features Europeans love — like instant pricing and direct availability for hotels, flights, and restaurants — and dismantle safety protections on Google Play," Walker said in a statement.

What we know

It was the latest major crackdown on Big Tech by Brussels, which has led the world in reining in some of the world’s largest companies from Silicon Valley to Beijing. And European consumers have a right to be told by app developers where to sign up to the best offers, even when the app store owner does not get a cut,” said Teresa Ribera, the commission's Executive Vice President for Clean, Just and Competitive Transition.

Gatekeepers have the obligation to ensure a level playing field and consumers the right to choose for cheaper alternative offers," European Commission spokesperson Thomas Regnier said. Shares of Google-parent Alphabet were around 4% lower in premarket trading, but that primarily reflected investor unease over rising AI spending outlined in the company's earnings report on Wednesday.

"In particular, Google prevents app developers from freely communicating and promoting offers and concluding contracts with users in distribution channels of their choice, including third-party app stores," the Commission said.

The details

CNBC Top News Google slapped with $1 billion fine under landmark EU digital law https://www.cnbc.com/2026/07/23/google-1-billion-eu-fine-dma.html 2026-07-23T10:20:33.335Z European regulators have fined Google 890 million euros ($1 billion), alleging the company gives preferential treatment to its own services. The tech giant has 60 days to comply with the Commission's decision, or it could be fined up to 5% of its worldwide turnover.

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The European Commission, the bloc's executive branch and highest antitrust enforcer, said it was acting in the interest of consumers after running an antitrust investigation of Google. Kent Walker, president of global affairs at Google and Alphabet, said the DMA will ruin the product experience for users. Under the law, large tech platforms such as Alphabet, Apple and Meta have been designated "gatekeepers," which means they are subject to additional provisions in the law.

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Google’s President of Global Affairs Kent Walker blasted the fine as “product degradation driven by a small group of self-serving complainants” that will have a negative impact on European businesses and consumers. The regulator said it would monitor the implementation of this move, which constitutes "substantial progress towards compliance." Google has also rolled out changes related to its steering terms in its app store.