What is DMA and why was Google fined again in the EU for $1.04 billion

This case demonstrates that the DMA is becoming one of the EU’s key tools for regulating Big Tech. The law establishes special rules for the largest digital platforms and requires them to create more open and competitive conditions for users, developers, and other companies.

In this article, we explore what the Digital Markets Act is, who is considered a gatekeeper, what restrictions apply to Google, Apple, Meta, and other tech giants, and how the DMA is changing Europe’s digital market.

What is the Digital Markets Act, DMA

Digital Markets Act, or the Digital Markets Act is legislation of the European Union designed to make digital markets fairer and more competitive.

At the heart of the law is the concept of gatekeepers. These are large digital platforms that provide key digital services and hold significant influence over the market. These include, in particular, Alphabet, Amazon, Apple, ByteDance, Meta, and Microsoft. In 2024, the European Commission also designated Booking.com as a gatekeeper for its online intermediation services.

The DMA sets specific rules for such companies—what they are allowed to do and which practices are prohibited.

Main requirements of the DMA

1. Prohibition of self-preferencing

Gatekeepers must not give their own services an advantage over competitors’ similar products in rankings and search results.

This rule was one of the grounds for Google’s recent fine. The European Commission found that Google provided its own services, including Shopping, Hotels, Transport, and Sports, with more favorable placement in search results.

2. Restrictions on the use of personal data

Companies cannot combine users’ personal data across different services for targeted advertising without effective user consent.

3. Interoperability

The DMA requires some gatekeepers to provide third-party developers with access to certain operating system and platform functions, so that competing services can operate on more equal terms.

4. Ability to use alternative channels

Gatekeepers must not prevent companies from informing users about offers outside their platforms and directing customers to alternative purchasing channels.

This requirement was also part of the Google case: the European Commission found that the company restricted developers’ ability to inform users about alternative, including cheaper, purchasing options and direct them to those channels.

Why Google received an €890 million fine

In July 2026, the European Commission adopted two decisions finding that Google had breached the DMA requirements.

The first breach relates to Google Search. According to the European Commission, Google gave its own services an advantage in search results over third-party services. For this, the company was fined €460 million.

The second breach concerns Google Play. The regulator found that developers were unable to freely inform users about alternative offers and direct them to other purchasing channels. For this, Google was fined an additional €430 million.

Thus, the total amount of fines amounted to €890 million.

However, the consequences of the DMA for Google are not limited to financial sanctions. The European Commission also ordered the company to cease the infringements and bring its relevant practices into compliance with the law’s requirements.

How the DMA threatens Big Tech

For the largest technology companies, the DMA means the need to change not only individual features but also some familiar principles of how their ecosystems operate.

1. Changes to digital ecosystems

Large platforms must provide users and third-party companies with more opportunities for choice.

For example, the DMA has already affected the operation of Apple and Google’s mobile ecosystems, including issues related to alternative app stores, choice of search engines, data transfer, and the interaction of third-party devices with operating systems.

2. Risk of large fines

A breach of the DMA can cost a company up to 10% of its global annual turnover, and in case of repeated breaches—up to 20%. In certain cases, the European Commission may also apply additional measures, including behavioral and structural requirements.

Therefore, for companies on the scale of Google, Apple, or Meta, potential sanctions could amount to billions of dollars.

3. Restrictions on data usage

The DMA gives users more control over how large platforms use their data. In particular, users must have the option to choose whether to allow the combination of personal data across different gatekeeper services.

This is particularly important for advertising platforms, as data from various services is one of the key resources for ad personalization.

4. More opportunities for competitors

One of the main goals of the DMA is to make digital markets more contestable, i.e., open to competition.

The European Commission notes that the application of the law has already led to the emergence of alternative app stores, expanded choices for browsers and search engines, and the development of compatibility between individual services.

What the DMA changes for users

For the average user, the DMA may appear as a set of minor changes, but collectively they affect how freely a person can choose services within a digital ecosystem.

Users in the EU gain more opportunities to choose alternative search engines and browsers, transfer data between services and devices, and control the combination of their personal data across different services.

However, the DMA does not mean a complete rejection of major technology platforms. The law does not prohibit Google, Apple, Meta, or Microsoft from operating in the European market. Its task is to establish additional rules for the largest platforms that should make competition fairer.