
The European Union has fined Google $1 billion for breaking the bloc's digital competition rules. The penalty is the first major enforcement action under the Digital Markets Act (DMA), a sweeping law designed to curb the power of Big Tech.
EU regulators said Google harmed rivals by prioritising its own services in search results and restricting app distribution on Android devices. The fine, converted from โฌ890 million, reflects the scale of the violation, officials said.
The DMA came into force earlier this year, targeting six major tech firms designated as 'gatekeepers'. It bans self-preferencing and requires platforms to offer users real choices in services like search engines and app stores.
In Google's case, the Commission found that the company had not complied with obligations to treat third-party services fairly. The order also forces Google to share search data with rival companies and open its Android operating system to competing AI firms.
The fine arrives against a backdrop of transatlantic tension over tech regulation. US President Donald Trump had earlier threatened tariffs or retaliatory measures against European nations that penalise American companies.
Trump's administration had warned Brussels against targeting US tech giants. The European Commission, however, has pressed ahead, arguing that the DMA is necessary to ensure fair competition and consumer choice in the digital market.
Google has said it will appeal the fine and the accompanying orders. The company maintains that its practices comply with the law and that the changes demanded could harm the user experience and security of Android devices.
Legal experts expect a lengthy battle in European courts. The case is being closely watched as a test of the DMA's enforcement powers against some of the world's most valuable corporations.
What to watch: The European Commission is expected to issue further decisions on other gatekeepers in the coming months, including Apple and Meta, as it continues to enforce the Digital Markets Act.