Google Fined $1.7 Billion as EU Demands Fair Play for Rivals

In a landmark move to rein in Big Tech, the European Commission has fined Alphabet's Google a total of €890 million (NZD$1.7 billion) for violating the Digital Markets Act (DMA). The fines, announced on July 23, 2026, mark the first penalties for Google under the DMA and the fifth and sixth overall for anti-competitive practices, bringing the company's total EU fines to €10.38 billion over nearly two decades.

Yet amid the crackdown, EU regulators acknowledged what they called a 'constructive dialogue' with Google, praising the tech giant for making significant progress toward compliance. This suggests that daily penalties for non-compliance may be avoided, as long as Google continues to adapt its practices.

What Did Google Do Wrong?

The first fine, worth €460 million, targets Google's practice of favoring its own services in search results for shopping, hotels, transport, and sports. The second, a €430 million penalty, focuses on Google Play restrictions that prevented app developers from steering users to cheaper offers on rival app stores or websites.

EU antitrust chief Teresa Ribera emphasized the bloc's determination to enforce the law, despite U.S. criticism and tariff threats. 'Our duty and obligation is to comply with the laws, that our laws are fully respected,' she told reporters. 'The DMA is to make sure we have a fair and level playing field.'

EU tech chief Henna Virkkunen added, 'With these decisions we want to make sure there is competition.'

Google Fights Back, Warns of 'Product Degradation'

Google has 60 days to comply with the Commission's orders to treat rivals fairly and allow app developers to steer users away from its app store. But the company is pushing back, criticizing the findings and threatening legal action.

Kent Walker, Google's President of Global Affairs, argued the ruling harms consumers. 'To comply, we are having to strip away real-time Search features Europeans love like instant pricing and direct availability for hotels, flights, and restaurants and dismantle safety protections on Google Play,' he said. 'This isn't fair competition; it's product degradation driven by a small group of self-serving complainants, with European businesses and consumers taking the hit.'

U.S. Trade Tensions Rise

The EU's crackdown has angered the Trump administration, which has threatened retaliatory tariffs. U.S. Trade Representative Jamieson Greer accused the EU of targeting American companies, pointing to a recent record loan to Airbus from the EU lending arm. 'It becomes clear that the EU continues to target the most competitive US companies,' Greer said, though he did not outline specific U.S. plans to retaliate.

Progress and Path Forward

Despite the fines, the Commission noted that Google has proposed and started testing changes to how it presents its own services on Google Search for free services like shopping, hotels, and flights. The EU watchdog also said Google may apply the principles of Thursday's decision to its AI-generated summaries, known as AI Overviews and AI Mode, with talks continuing.

Google's changes to its steering terms on Google Play received a tentative thumbs up from the Commission. 'These constitute good progress towards compliance and will also be assessed in light of the cease and desist order of today's decision,' it said.

The fines come after similar penalties were handed to Apple and Meta Platforms in April 2025, underscoring Europe's resolve to hold Big Tech accountable. For New Zealanders watching from afar, this is a powerful reminder that competition and consumer rights can be protected, even when global giants push back.

Frequently Asked Questions

Why did the EU fine Google so much?

The EU fined Google €890 million for violating the Digital Markets Act, specifically for favoring its own services in search results and restricting app developers on Google Play. These practices stifle competition and harm consumers.

Will Google have to pay more fines?

Probably not, at least for now. The EU praised Google's progress in complying with the DMA, indicating that daily penalties for non-compliance are unlikely. However, Google must continue to make changes or face further action.

How does this affect New Zealand?

While the fines are European, they set a global precedent. New Zealand regulators and consumers can learn from the EU's approach to Big Tech accountability, potentially influencing local policies on competition and digital markets.