The European Commission said Google used its dominant position in search and app distribution to steer consumers towards its own services and restrict competition. The European Union has fined Google 890 million euros, or nearly $1 billion, after concluding that the technology giant violated the bloc’s digital competition rules through the operation of its Google Play app store and search engine, The Associated Press reported.
The penalty, announced on Thursday, marks the major antitrust action by Brussels against one of the world’s largest technology companies. The European Commission, the EU’s executive arm and competition regulator, said Google’s practices had disadvantaged rivals and limited consumer choice.
This development comes amid growing tensions between the European Union and the United States over the bloc’s regulation of American technology companies.
EU says Google steered users towards its own services
According to AP report, the European Commission said its investigation found that Google had used its position in search and app distribution to give an advantage to its own products and services. The regulator said the company’s practices affected competition by directing consumers towards Google’s own services while making it more difficult for rival businesses to compete 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, the European Commission’s Executive Vice President for Clean, Just and Competitive Transition, said, according to the Associated Press.
She added that European consumers should be able to learn from app developers where they can access the best offers, even when the app store operator does not receive a commission from the transaction.
Google attacks ‘product degradation’ approach
Google criticised the EU decision and rejected the Commission’s assessment of its business practices. Kent Walker, Google’s President of Global Affairs, described the fine as the result of what he called “product degradation driven by a small group of self-serving complainants”.
Walker argued that the EU’s digital regulations were forcing Google to remove or modify features used by European consumers.
He said the bloc’s Digital Markets Act required Google to reduce or remove certain real-time search features, including information on pricing and availability for hotels, flights and restaurants. Walker also claimed that the regulations were weakening safety protections on Google Play.
Google faces continued EU antitrust scrutiny
The latest fine adds to a long list of regulatory battles between Google and the European Union. Recently, Google lost its appeal against a 4.5-billion-euro antitrust penalty imposed by the EU over its Android mobile operating system. The Commission had concluded that Google had used Android’s dominance to restrict competition and limit consumer choice.
The company has also faced investigations and regulatory action over its search, advertising and digital platform businesses.
The EU has increasingly used competition law and newer digital regulations to challenge the business models of large technology companies.
Brussels continues crackdown on Big Tech
The European Union has designated several of the world’s largest technology companies as “gatekeepers” under its digital competition framework. The list includes Amazon, Apple, Google parent Alphabet, Meta, Microsoft and TikTok owner ByteDance.
The designation places additional obligations on companies that are considered to control key digital platforms and provide essential access to consumers and businesses.
European Commission spokesperson Thomas Regnier said the rules were designed to ensure that businesses could compete on a level playing field.
“In the EU, businesses have the right to compete fairly. Gatekeepers have the obligation to ensure a level playing field and consumers the right to choose cheaper alternative offers,” he said.
In 2025, Alphabet reported $403 billion in revenue, highlighting the scale of the company at the centre of the EU’s latest enforcement action.
Fine comes amid EU-US tensions over digital regulation
The latest action could further complicate relations between Brussels and Washington. US President Donald Trump has repeatedly criticised European digital regulations and previously warned that American technology companies should not be unfairly targeted by European authorities.
The EU’s regulatory push has become a point of friction in broader transatlantic relations, which have also been strained by disagreements over trade, tariffs and defence commitments.
Despite the political pressure, Brussels has continued to pursue investigations and penalties against major technology companies, arguing that its digital rules apply equally to all companies operating in the European market.
Alphabet reports first quarterly cash burn
On Thursday, Alphabet burnt cash for the first time since it went public more than two decades ago, even as net income quadrupled to $112.1 billion, profiting not by search or cloud but by a paper windfall on minority stakes in Anthropic and Elon Musk’s SpaceX.
According to reports, Alphabet posted negative free cash flow of $5.86 billion for the three months to June, the first negative quarterly free cash flow in its history as a listed company, and lifted its capital spending guidance for the year to between $195 billion and $205 billion.
Its shares fell about 3% in after-hours trading.
