The European Commission imposed a €890 million ($1 billion) fine on Google Thursday, determining that the firm breached the Digital Markets Act rules designed to promote fair online competition.

Google received gatekeeper status for its Search service in September 2023, prompting the launch of compliance probes in March 2024.

The Commission stated Thursday that Google had given priority to its own offerings within Search results and limited the ability of app developers to guide users toward lower-cost options outside the Google Play store.

The regulator concluded that Google provided preferential placement to its own shopping, hotel, travel and sports listings ahead of rival offerings in Search, violating DMA requirements.

App developers were also blocked from freely informing users about alternative purchase channels or completing transactions through third-party platforms.

Of the total fine, €460 million addressed the search ranking practices while €430 million covered the app store restrictions. Gatekeepers must now rank third-party services neutrally in search displays.

Google must halt the violations within 60 days or face daily penalty payments reaching 5 percent of global revenue. The company retains the right to challenge the rulings.

Google has already begun trials of revised search result placements and updated its app store policies, moves the Commission viewed as meaningful steps toward compliance.

Executive Vice-President Teresa Ribera stated that Google had not achieved full DMA compliance and that the enforcement action balanced sanctions with corrective measures. She emphasized that superior products should win on merit rather than ownership of the platform and that users deserve clear information on better deals from app makers.

Earlier in September the Commission also fined Google €2.95 billion for favoring its own adtech tools through dominance in digital advertising markets. That same month French authorities issued a separate €325 million penalty over unauthorized ad displays in Gmail and cookie consent issues.

In early July Google lost its final appeal against a €4.1 billion fine related to Android practices that promoted its search engine and Chrome browser.