Brussels fines Google €890m as tech rules clash with US tariffs

The European Commission fined Google €890 million on Thursday for systematically favouring its own services in search results and preventing app developers from steering consumers to cheaper outside options. The penalty concludes an investigation launched in March 2024 under the Digital Markets Act (DMA), the bloc’s rulebook for dominant tech platforms.

Of the total fine, €460 million relates to Google elevating its own Shopping, Hotels and Flights services over competitors in search rankings. The remaining €430 million covers restrictions stopping developers from informing users about alternative payment systems or cheaper offers outside the Google app store. The Commission has ordered Google to end these practices within 60 days or face periodic penalties of up to 5% of its worldwide turnover.

Google is already testing changes to its search and app store, though it did not confirm whether it intends to appeal. The company argues the mandated changes will hurt the European digital ecosystem. "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. Regulation should improve products, not make them worse," said Google President of Global Affairs Kent Walker.

A transatlantic flashpoint

While the fine is a technical assessment of DMA compliance, its timing threatens to ignite fresh transatlantic friction. The Trump administration has repeatedly labelled EU digital regulations a trade "irritant," sometimes equating such penalties with commercial tariffs. The penalty lands just as Washington prepares a fresh set of trade duties to replace a regime expiring this week, following a US Supreme Court ruling that invalidated previous tariffs imposed in 2025.

The anticipated US duties are expected to target forced labour and overcapacity, including a Section 301 investigation touching on German drug pricing. This follows the Turnberry agreement struck a year ago, under which the EU removed duties on most US industrial products and accepted a 15% US tariff on its exports to resolve a prior dispute.

Brussels has previously shown susceptibility to political pressure when sanctioning American tech firms. Last September, Trade Commissioner Maroš Šefčovič opposed issuing a fine against Google's digital advertising business until a trade deal with Washington was finalised. For European businesses and investors, this latest penalty signals whether the Commission can now enforce its digital rules independently, even as broader trade negotiations with the White House turn hostile.