The European Commission has fined Google €890 million (approximately KSh129 billion) for breaching the Digital Markets Act (DMA) by giving preferential treatment to its own services in Google Search and restricting app developers on the Google Play Store.
The penalty marks Google's first fine under the EU's landmark digital competition law.
The Commission found that Google unfairly promoted its own services including shopping, hotel and travel results above those of competing providers in search results.
Regulators also concluded that the company prevented app developers from freely directing users to cheaper offers and alternative payment methods outside the Google Play Store.
The fine comprises €460 million for search-related violations and €430 million for restrictions linked to Google Play.
In addition to the financial penalty, the Commission has ordered Google to change its search ranking practices and Play Store policies within 60 days or risk additional daily fines.
Google criticised the decision, arguing that the Commission's requirements could reduce the quality of its products and negatively affect European consumers and businesses.
The company said it is considering an appeal while continuing discussions with regulators on how to comply with the rules.
The latest action is part of the European Union's broader effort to curb the market power of major technology companies and ensure fair competition in digital markets.
It also adds to the series of antitrust penalties Google has faced in Europe over the past decade, with total fines against the company now exceeding €10 billion.
