Alphabet’s Google was fined nearly $1 billion by European Union regulators on Thursday for violating digital competition rules. The European Commission said the penalties targeted practices that limited fair competition and favoured Google’s own services.
The EU imposed two separate fines totalling €890 million, or about $1 billion. One penalty of €460 million involved Google’s search services, where regulators said the company gave preference to its own products over rivals.
Read more: Google fined €1.49 billion by EU
The second fine of €430 million focused on Google Play rules. The European Commission said the company restricted app developers from directing users to cheaper offers outside its app store. Google has 60 days to comply with the orders.
Meanwhile, EU officials said Google had made progress in addressing regulatory concerns. The commission highlighted ongoing discussions with the company and indicated that additional penalties were unlikely if compliance efforts continued.
Additionally, Google said it disagreed with the EU findings and could challenge the decision in court. The company argued that the required changes could reduce some features used by European consumers and businesses.
Read more: Google gets second extension to reply to EU charge
The penalties reflect Europe’s broader effort to limit the market power of major technology companies. Therefore, the decision could increase tensions between EU regulators and US officials, who have criticised actions against American firms.
The European Commission said it would continue reviewing Google’s proposed changes to search services and app store policies. Regulators will also examine how the company applies competition rules to artificial intelligence features, including AI-generated summaries.