The European Commission has levied its first major penalty under the Digital Markets Act (DMA), hitting Alphabet-owned Google with an aggregate fine of €890M and ordering the tech giant to overhaul how it handles search results and app store transactions within 60 days—or face periodic penalties equivalent to 5% of global turnover.
The dual enforcement action targets two core practices: Google Search's preferential treatment of its own services (€460M penalty) and Google Play Store's restrictions on developers seeking to direct users toward cheaper purchasing channels (€430M penalty). Both violations were documented between March 2024 and December 2025, marking a critical test of Brussels' authority to regulate gatekeeper platforms in real time.
Why This Matters
• Visible changes to search results: Google must now grant equal visual prominence to third-party hotel, flight, restaurant, and shopping services—potentially altering what residents see when searching for everyday transactions.
• App pricing transparency: Developers can now freely inform users of alternative purchase options outside Google Play, often at lower cost, without facing punitive commission structures.
• Compliance deadline: Google has until late September 2026 to implement changes; failure triggers automatic fines calculated daily as a percentage of worldwide revenue.
• Precedent for other gatekeepers: The Commission has also initiated formal proceedings against other major technology platforms under the same regulation, signaling sustained enforcement momentum.
What Google Must Change
The Italy operations of Google, like those across the European Union, will need to adapt to two explicit mandates issued by the Commission's competition directorate.
First, Google Search rankings must apply transparent, fair, and non-discriminatory criteria to all competing services. The Commission found that Google's own shopping tools, hotel price widgets, and sports score panels appeared at the top of results pages with advanced filters and graphical elements unavailable to rivals offering identical information. This violated Article 6(5) of the DMA, which requires gatekeepers to rank services without self-favoring.
Second, Google Play Store must allow app developers to communicate and promote offers outside the Android app ecosystem without penalty. Previously, developers faced steep and prolonged "steering fees" if they directed users to alternative storefronts or web-based subscriptions. The Commission ruled that both the amount and duration of these fees exceeded what the DMA permits under Article 5(4), which guarantees developers the right to contract with users through any distribution channel.
Google has stated it is reviewing the decisions and considering an appeal, a process that could stretch into 2027. In the interim, the company must demonstrate compliance or face escalating sanctions.
The Defense: Product Degradation or Regulatory Necessity?
Kent Walker, president of global affairs at Google and Alphabet, issued a sharp rebuke hours after the decision, framing the enforcement as a "product degradation driven by a small group of self-serving complainants."
He argued that compliance will force the removal of real-time features Europeans rely on, including instant hotel pricing, flight availability, and restaurant booking integrations embedded directly in search results. Walker also claimed the ruling compels Google to "dismantle safety protections" on the Play Store, though he did not specify which security measures are affected.
The company's narrative centers on a tension between regulatory fairness and user experience: Google contends that surfacing its own services improves convenience, while Brussels counters that such convenience comes at the expense of market access for competitors and price transparency for consumers. The complainants in this case reportedly include competing search engines, shopping comparison services, and app distribution platforms that argued they were unfairly disadvantaged in search rankings and app store visibility.
Brussels Pushes Back: "Best Products Should Win Because They're Better"
Teresa Ribiera, European Commission vice president, rejected Google's framing in a statement that emphasized consumer empowerment over platform convenience. "The best products should succeed because they are better, not because they belong to the company that operates the search engine," she said. "European consumers have the right to be informed by app developers about where to find the best deals, even when the app store owner receives no commission."
Henna Virkkunen, the Commission's executive vice president for technological sovereignty, added that the decision sends a "clear message: we will not hesitate to use our tools to safeguard business and innovation opportunities opened by the DMA." She noted that Google's practices "harm businesses offering similar services" by denying them equivalent visibility and that the company "prevented app developers from offering better deals to customers."
The Commission's review of the DMA's implementation concluded the law was "fit for purpose" and already delivering new opportunities for businesses, more control for users, and access to more diverse digital products.
What This Means for Italian Residents
For individuals and businesses based in Italy, the practical effects will unfold gradually but could reshape routine digital interactions.
Search behavior: Users booking travel to Italian destinations, comparing restaurant prices in local cities, or shopping online may begin seeing more third-party widgets and price-comparison tools alongside or instead of Google's native integrations. This could mean more clicking and cross-referencing, but also exposure to competitive rates that were previously buried lower in results. Italian hotels, restaurants, and e-commerce businesses may gain improved visibility in search results if they are currently disadvantaged.
App subscriptions and in-app purchases: Developers of streaming services, fitness apps, and digital content platforms can now openly advertise discounts available on their websites or alternative app stores, bypassing Google's 15-30% commission structure. For Italian consumers, this translates to potential savings on monthly subscriptions and one-time purchases. This is particularly relevant for Italian-language apps and services serving the local market.
Role of Italian authorities: While this is an EU-wide enforcement action, Italy's national competition authority (AGCM) will monitor implementation within Italian territory and can coordinate with the European Commission on compliance matters. Italian businesses that file complaints about unfair search visibility or app distribution practices may have additional recourse through AGCM.
Innovation trade-offs: Google has signaled that DMA compliance slows the rollout of artificial intelligence features in Europe, including AI-generated search summaries and conversational search modes. The Commission has taken note of Google's proposals on how it intends to apply DMA principles to AI Overviews and AI Mode, indicating these products remain under regulatory scrutiny across all EU member states, including Italy.
Broader Enforcement Context
Google's €890M penalty represents the Commission's most significant enforcement action under the DMA to date, forming part of a coordinated enforcement wave targeting multiple gatekeepers under the regulation.
The Commission has opened formal proceedings against multiple technology platforms to assess their compliance with DMA obligations regarding data-sharing, interoperability, and anti-steering provisions. A market investigation is examining whether the DMA adequately addresses anticompetitive practices affecting smaller businesses and consumers across the EU.
Various platforms remain under investigation to determine gatekeeper status or assess potential violations of DMA principles. Google itself faces additional interoperability specification proceedings related to Android and data-sharing obligations opened in January 2026.
The Geopolitical Dimension
The DMA's aggressive enforcement has strained transatlantic relations, with Washington expressing concern that Brussels is unfairly targeting American technology firms. Some analysts warn that sustained pressure from the United States could weaken the Commission's resolve, though officials have publicly committed to consistent application regardless of corporate nationality.
For Italy-based businesses that rely on Google advertising, search visibility, and app distribution, the regulatory uncertainty introduces both risks and opportunities. Smaller competitors may gain market share if enforcement succeeds in leveling the playing field, but established players dependent on Google's ecosystem may face disruption as features are removed or redesigned.
The Commission will continue monitoring Google's compliance and has indicated it will assess how the company applies DMA principles to emerging AI products, suggesting that enforcement will extend into generative search and conversational interfaces as these technologies mature.
Google's 60-day compliance window closes in late September 2026. If the company fails to satisfy Brussels, automatic penalties begin accruing immediately, calculated as a daily percentage of Alphabet's global revenue—a mechanism designed to ensure even the world's largest corporations cannot afford prolonged non-compliance.
