Record EU fine for Google: 890 million for violating the DMA

What happened?

On July 23, 2026, the European Commission announced two fines against Google totaling 890 million euros, the first firm sanction under the Digital Markets Act (DMA). The first fine, of 460 million, is for self-preferencing in Google Search: the company places its own services (Shopping, Hotels, Flights, sports results) at the top of results with enriched visual formats, proprietary filters, and graphic elements that rivals cannot replicate, relegating comparison sites like Idealo, Trivago, or Skyscanner to lower positions with a simple list format. The second, of 430 million, is for blocking Google Play developers who wish to offer payment alternatives outside the store: they could not freely link to their own websites or alternative stores to complete the purchase, and when they did, Google continued to charge a commission on those external transactions for a period the Commission considers disproportionate. This is the first firm sanction against Google under the DMA, and it comes less than a week after AliExpress received 550 million for violating the Digital Services Act, the sister regulation that monitors the sale of products on platforms.

Why is it important?

This fine represents a turning point in the regulation of big tech. The DMA, in force since 2024, establishes strict rules for 'gatekeepers' like Google, Apple, or Meta. Until now, sanctions had been minor or were in process. With this decision, the EU demonstrates that it is willing to impose significant economic punishments to enforce the law. To contextualize, in 2018 the EU fined Google 4.34 billion for abuses in Android, but that sanction was under traditional antitrust legislation, which is slower and reactive. The DMA, on the other hand, is proactive and allows for fines of up to 20% of global annual revenue in case of recidivism. The current fine, although a record under the DMA, represents only 0.3% of Alphabet's annual revenue (which exceeds 300 billion). However, it sets a precedent: the Commission has made it clear that it will use the DMA to force structural changes. For users, this could translate into more options and more competitive prices in searches and apps. For developers, it is a relief to be able to offer alternative payment methods without fear of retaliation, which could reduce commissions, which currently range between 15% and 30% in the Play Store.

Immediate and long-term consequences

Google has 60 days to correct both practices. If it fails to do so, it faces coercive fines of up to 5% of its daily global turnover, which could amount to billions more. The Commission has specified that the corrections must be effective and verifiable: in Search, Google must treat its own services the same as those of third parties in terms of positioning and format; in Play, it must allow links to alternative payment systems without charging additional commissions. In the long term, this sanction sets a precedent for other gatekeepers. Apple, for example, faces similar investigations for its App Store restrictions, and was already fined 1.8 billion in 2024 for Spotify, although that sanction was under antitrust law. The decision could accelerate changes in Google's business model: it could be forced to redesign its search results page and eliminate commissions for external payments in the Play Store. For competitors, such as price comparison sites, it is a victory that could restore lost traffic. According to data from the Commission itself, traffic to comparison sites fell by up to 40% since Google introduced enriched formats in 2020. In addition, the DMA has already forced Google to implement choice screens on Android to select a default search engine, although with criticism that they are not effective. This fine reinforces the pressure for those solutions to be real.

What readers should know

This fine is not an isolated event, but part of a coordinated effort by the EU to regulate the power of big tech. Google users in Europe will notice changes in the coming months: more payment options in apps and more neutral search results. Developers, for their part, will be able to avoid Google's commissions by directing users to their own platforms. However, Google has already announced that it will appeal the decision, which could prolong the judicial process. The company argues that its practices benefit users and that the DMA is too restrictive. Meanwhile, the European Commission has made it clear that it will not hesitate to impose new sanctions if the practices persist. In addition, other investigations are underway: Meta faces charges for its 'pay or consent' model, and Apple for restrictions in the App Store. This is just the first chapter of a new regulatory era. For investors, the fine is manageable, but the risk of structural changes in Google's business is real. For consumers, the promise of the DMA is more competition and lower prices, but the real impact will depend on implementation and whether Google complies or appeals.