The European Commission fined Google €890 million on July 23 for breaching the Digital Markets Act, marking the first penalty under the bloc’s landmark tech competition law. The fine is the largest DMA penalty to date and pushes Google’s cumulative EU liabilities above €10 billion.

The violations fell into two categories. Google steered users toward its own services inside Google Search—a practice regulators call self-preferencing. The company also placed restrictions on app developers, preventing them from directing users toward cheaper payment options outside the Google Play ecosystem.

The Self-Preferencing Charge

Google owes €460 million for self-preferencing in search results. The company promoted its own services—Google Maps, Google Hotels, Google Flights—in premium positions, burying competitors. European regulators found this gave Google an unfair advantage and harmed competition.

Google has known this was a risk since the DMA passed in 2022. The company spent months negotiating compliance. The fine suggests those efforts came up short.

Payment Processing Restrictions

The remaining €430 million covers restrictions Google placed on app developers in Google Play. Specifically, Google prevented app makers from linking users to cheaper payment options outside Google’s ecosystem. Google Play takes a 15-30% cut of in-app purchases. Competitors faced a ceiling: they could either accept Google’s terms or exit the platform.

The restriction harmed developers and, regulators argue, harmed users by limiting payment choices.

60-Day Compliance Deadline

The fine comes with teeth. Google has 60 days to comply with the Commission’s orders or face daily penalties. The Commission demanded Google redesign its search results to stop self-preferencing and allow app developers greater freedom in payment processing.

Google can appeal. But the timeline is tight, and penalties compound daily.

The DMA is working as intended: forcing compliance through fines big enough to matter.

FYI

How much is €890 million in US dollars?

Roughly $1 billion USD. For Google, a company with annual revenue over $300 billion, it’s material but not existential. The precedent, though, matters more than the amount.