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Google has been fined 890 million euros by the European Union for allegedly using its power to favor its own apps and services over those of its competitors. This is a significant move by the EU, as it is the first major action taken against Google under the new Digital Markets Act, a law designed to limit the power of the world’s largest technology companies. The European Commission claims that Google’s actions have limited consumer choice and given its own services an unfair advantage, making it harder for other companies to compete.

The fine is split into two parts. The first part, 460 million euros, is because Google was found to be promoting its own hotel and flight booking services in search results, making it more difficult for users to find similar services from other companies. The second part, 430 million euros, is due to Google’s rules in its Play Store, which the EU says prevented users from seeing cheaper offers available outside of Google’s marketplace. These actions, according to the EU, are not just about competition between companies, but also about making sure that consumers have real choices and can access the best deals.

Google, however, disagrees with the EU’s decision. Kent Walker, Google’s president of global affairs, said that the company will have to remove features that many Europeans enjoy, such as instant pricing and direct availability for hotels, flights, and restaurants, as well as some safety protections on Google Play. He argued that these changes are not fair competition. Despite Google’s objections, EU officials say the new rules are necessary to prevent big companies from using their power to block others. They believe that the best products should succeed because they are better, not just because they belong to the company that runs the search engine.

This is not the first time Google has faced fines from European regulators. In the past, Google has been fined billions of euros for other competition issues. EU leaders say that companies should win customers because of the quality of their products, not because they control the market. They hope that this decision will encourage more competition and allow other companies to innovate. Some experts believe the EU delayed its decision to avoid upsetting relations with the United States, but eventually decided it was important to act.

Now, Google has 60 days to comply with the new rules or it can challenge the decision in court. This case is being watched closely by other tech companies and governments around the world, as it could set an example for how big technology firms are regulated in the future. The EU wants to show that it is serious about making sure that even the largest companies follow the rules and do not use their power to hurt competition or limit choices for consumers.