Brussels set to hit Google with first DMA fine worth 1 billion euros

The European Commission is expected to issue a roughly one billion euro fine against Google on Thursday, marking the first penalty levied under the Digital Markets Act (DMA). Two senior EU officials confirmed the upcoming announcement, which will be finalised during a College of Commissioners meeting led by Ursula von der Leyen.

The fine stems from two separate proceedings launched in March 2024. The first case centres on allegations that Google unfairly favours its own services in online search results. The second involves claims that the tech giant prevents app developers from advertising alternative download options outside of the Google Play Store.

While a one billion euro penalty is substantial, it represents a fraction of the DMA's maximum enforcement power. The legislation allows for fines reaching up to 10 percent of a company's total global turnover. Google’s parent company, Alphabet, posted a record $402.8 billion (€353.08 billion) in annual revenue in 2025.

A pattern of enforcement

The anticipated fine follows another regulatory action against the company just days ago. The Commission ordered Google to begin sharing search data with rival search engines by January 2027 and to open its Android operating system to competing artificial intelligence services.

Henna Virkkunen, the EU’s tech chief, framed that decision as a win for consumers, stating it would allow European users to enjoy "greater choice" of services. However, Google's head of global affairs, Kent Walker, pushed back, warning the measure risked "undermining vital privacy and security guardrails for millions of Europeans."

Transatlantic friction

For European markets and investors, the immediate financial impact on Alphabet will be limited. The broader significance lies in how Brussels enforces its digital rulebook and the resulting geopolitical fallout. The DMA requires large technology companies operating in Europe to facilitate fair competition rather than leverage their market dominance.

Washington has already voiced strong opposition to the legislation, with the Trump administration previously accusing Brussels of unfairly targeting American companies. Imposing the first DMA fine will put that diplomatic friction to the test, forcing the Commission to balance its domestic competition agenda against the risk of a retaliatory trade response from the United States.