EU Hits Alphabet With $1 Billion Fine Over DMA Violations

The European Commission has fined Alphabet, the parent company of Google, €890 million (approximately $1 billion) for violating the Digital Markets Act (DMA), according to reporting from The Verge.

The penalty consists of two separate fines. A €460 million fine was issued because Google gave preferential treatment to its own Flights, Hotels, and Shopping services within search results. A second €430 million fine targets Play Store rules that blocked Android developers from directing users toward potentially cheaper alternative payment systems.

As a result of the ruling, Google has 60 days to update its policies or face additional periodic payments. The company must now treat third-party services in a non-discriminatory and fair manner in Search and allow Android developers to promote offers both outside and inside the Play Store.

This action follows a non-compliance investigation opened over two years ago and a preliminary ruling in March 2025. While Google previously attempted changes—including removing the Google Flights widget for EU users—the Commission stated in May 2026 that the company's proposal was "simply not strong enough," as reported by The Verge. Google has pushed back against these requirements, telling Reuters in May that such changes created a "second-rate experience" for European users. Regarding the Play Store, Google argued in a blog post that the DMA forces the removal of safeguards, making it harder to protect users from malicious links and scams.

Teresa Ribera, the Commission’s executive vice-president for clean, just and competitive transition, stated that the DMA is intended to ensure the best products succeed based on quality rather than ownership by the search engine provider. The Commission noted that the maximum fine for DMA breaches can reach 10 percent of a company's global annual revenue, which would be $40 billion for Google based on its reported 2025 revenue of $400 billion.