Google fined €890M for violating DMA: first sanction against a tech giant by the EU

What happened?

On June 18, 2025, the European Commission imposed a historic €890 million fine on Google for infringing the Digital Markets Act (DMA). This is the first sanction of its kind against a major tech company since the regulation came into force in November 2023. The fine is split into two parts: €460 million for self-preference in search results, where Google systematically favored its own shopping, hotel, and transport services over competitors; and €430 million for restrictions on Google Play that prevented developers from directing users to alternative payment options outside the platform, such as third-party systems or direct links. The decision is based on a Commission investigation that began in March 2024, following complaints from competitors like Booking, Expedia, and the developer coalition 'Coalition for App Fairness'. The DMA requires platforms designated as 'gatekeepers' to comply with ex-ante obligations, and the Commission considered that Google violated Articles 6(5) (prohibition of self-preference) and 5(4) (obligation to allow alternative payment methods).

Why is this important?

This sanction sets a crucial precedent for the enforcement of the DMA, a law designed to curb the power of big tech. Until now, the EU had fined companies like Apple (€1.8 billion in 2024 for anticompetitive practices in music streaming under traditional competition law) and Meta (smaller fines for privacy breaches), but never under the specific framework of the DMA. The fine against Google shows that Brussels is willing to use its full regulatory arsenal against the practices of dominant platforms. Moreover, the amount is significant: although it represents only 0.3% of Alphabet's annual revenue (about $340 billion in 2024), it sends a clear signal to the entire sector. Executive Vice President Margrethe Vestager stated: “The DMA is not an ex-post competition law, but a set of ex-ante rules that large platforms must comply with from day one.” This case also marks a paradigm shift: while previous competition fines required years of litigation to prove abuse, the DMA allows for rapid sanctions for non-compliance with clear obligations.

What consequences will it have?

For Google, the fine implies immediate operational changes. It will have to modify its search algorithms to eliminate self-preference in categories such as shopping, hotels, and transport, which could affect its advertising and commission business model. On Google Play, it will have to allow developers to use alternative payment systems without restrictions, such as links to their own websites or third-party payment gateways, reducing the 30% commission it currently charges. In the long term, if it fails to comply, it could face additional fines of up to 20% of its global daily revenue, according to the DMA. Other tech companies like Amazon, Meta, Apple, Microsoft, and ByteDance (TikTok) are under similar scrutiny; the Commission has already opened investigations into Apple for its App Store restrictions and into Meta for its 'pay or consent' model. For users, this could translate into more options and lower prices for services like hotels, flights, or apps, as competition intensifies. For competitors like Booking, Expedia, or app developers, it is a regulatory victory that levels the playing field and reduces barriers to entry. However, Google has announced it will appeal the fine before the Court of Justice of the EU, which could delay the implementation of changes.

Historical context and comparisons

The DMA is the EU's response to the excessive power of big tech. In 2017, Google was already fined €2.42 billion for favoring its shopping comparison service in searches (Google Shopping case), and in 2018 with €4.34 billion for abusing Android's dominant position by requiring manufacturers to pre-install its services. However, both fines were imposed under traditional competition law (Article 102 TFEU) and required years of litigation. The DMA introduces ex-ante (proactive) obligations that platforms must comply with from the moment they are designated as 'gatekeepers', without needing to prove abuse of dominant position. This fine is the first application of that approach. Compared to the Apple sanction under the DMA (still pending final resolution, though a similar fine is expected), Google's is the first firm one. The €890 million fine is smaller than Google's previous ones, but its importance lies in the legal framework: the DMA allows sanctions of up to 10% of global annual revenue, and up to 20% in case of repeat offenses. In this case, the Commission opted for a moderate fine to send a signal without being excessively punitive.

What should readers know?

The DMA not only affects Google; it also regulates Apple, Amazon, Meta, Microsoft, and ByteDance. Users can expect changes such as the ability to uninstall pre-installed apps, choose default browsers, access advertising data, and have more transparency in targeting. For developers, the DMA opens opportunities to compete without the constraints of dominant platforms, such as the ability to offer their own payment methods without forced commissions. However, tech companies argue that these regulations can stifle innovation and compromise security. For example, Google has pointed out that allowing alternative payment methods could expose users to fraud. The Commission, for its part, maintains that the DMA includes safeguards for security and privacy. The debate is ongoing: is the DMA a model for other regions to follow, or a regulatory overreach that harms European competitiveness?

“The DMA is not an ex-post competition law, but a set of ex-ante rules that large platforms must comply with from day one,” said Margrethe Vestager, Executive Vice President of the European Commission.

Implications for the future of work and automation

The sanction also impacts the startup ecosystem and automation. By reducing barriers on Google Play, developers of productivity and automation apps can reach users without paying high 30% commissions, lowering acquisition costs and enabling more competitive pricing. Additionally, the ban on search self-preference benefits AI and automation services that compete with Google, such as virtual assistants (Alexa, Siri) or business automation tools (Zapier, UiPath). For example, a user searching for 'best AI assistant for business' will no longer see only Google Assistant results, but also competitors. This fosters a more open market that can accelerate innovation in software and SaaS. According to Commission data, the DMA could increase EU GDP by 1.5% in the long term by reducing barriers to entry. However, big tech warns that regulatory fragmentation could curb R&D investment in Europe. In any case, the Google fine is a milestone that redefines the rules of the digital game.