Tech Beetle briefing IN AI

EU fines Google Rs 9796 crore for violating Digital Markets Act over Search and Play Store practices

Essential brief

The European Union has fined Google's parent company, Alphabet, €890 million for violating the Digital Markets Act, following a two-year investigation. The fine addresses unfair promotion of Google

Key topics

fines google crore violating digital markets search play store practices European Union Google Alphabet

Key facts

The EU fined Google €890 million for violating the Digital Markets Act over Search and Play Store practices.

Google unfairly promoted its own services in search results, disadvantaging competitors.

The company restricted Android developers from offering alternative payment methods in the Play Store.

Google must now allow developers to promote alternative payment options inside and outside the Play Store.

Highlights

The fine totals €890 million, split between Search (€460 million) and Play Store (€430 million) violations.

The investigation began over two years ago, with a preliminary ruling in March 2025 and an extension in May 2026.

Google removed the Google Flights widget and increased third-party comparison site visibility but changes were insufficient.

Google argues the DMA harms product quality and user protection but has made some Play Store rule updates.

This is not Google's first EU fine; it was fined €2.42 billion in 2017 for antitrust violations related to its shopping service.

Why it matters

This fine underscores the European Union's commitment to enforcing the Digital Markets Act and regulating dominant tech companies to ensure fair competition. By penalizing Google for favoring its own services and restricting developer payment options, the EU aims to foster a more open and competitive digital market. The ruling may influence how major tech firms operate globally, particularly regarding platform fairness and user choice.

The European Union has imposed a fine of €890 million on Alphabet, Google's parent company, for breaching the Digital Markets Act (DMA). This penalty follows a two-year investigation into Google's business practices concerning its Search engine and Play Store. The European Commission initially issued a preliminary ruling in March 2025, giving Google time to address the concerns. However, after an extension granted in May 2026 due to inadequate corrective measures, the Commission proceeded with the fine on July 23, 2026.

The fine is divided into two parts: €460 million for Google's search business and €430 million for its Play Store policies. The Commission found that Google unfairly prioritized its own Shopping, Hotels, and Flights services over rival comparison platforms in search results, violating rules that require fair and non-discriminatory treatment of competing services. Regarding the Play Store, Google was penalized for restricting Android developers from directing users to alternative payment methods that could offer lower prices.

Alongside the fine, the Commission issued a new order requiring Google to allow developers to promote alternative payment options both inside and outside the Play Store. Despite Google's efforts to comply, including removing the Google Flights widget for EU users and increasing visibility for third-party comparison sites, the Commission deemed these changes insufficient.

Google has argued that the DMA negatively impacts product quality and user protection on Android. Nonetheless, the company recently updated some Play Store rules following regulatory discussions, which the Commission acknowledged as positive progress. This fine adds to Google's ongoing legal challenges in Europe, including a €2.42 billion fine in 2017 for similar antitrust violations related to its shopping services. Additionally, Google faces legal scrutiny in the United States over its Play Store policies.

Key topics in this update include fines google, crore, and violating digital markets.