After Apple, Google Could Now Be Fined Hundreds of Millions Unless It Makes This Change

The European Union's ruthless crackdown on dominant tech platforms shows no signs of easing or stopping. Following a high-profile fine against Apple for allegedly breaching competition rules, Google now faces a possible financial penalty of its own if it does not adopt further changes to its app distribution policies.

The main change needs to happen on Google's Play Store, and now it all depends on whether the company will present regulators with convincing concessions. Because if they don't, they stand to face fines amounting to hundreds of millions, or even more.

Why Google is Under Pressure from the EU

Since very early this year, the app store operated by Google, Google Play, has been under intense scrutiny by the European Commission. Moreover, investigators are mainly concerned by technical restrictions that prevent app developers from informing users about cheaper offers available outside the Play Store or directing them to alternative payment channels.

Additionally, the commission argues that the service fees Google charges for handling an app developer's first customer acquisition are unjustified. Then, in August, Google tried to address some of those complaints by rolling out tweaks that, in theory, gave developers greater flexibility, such as letting them choose different fee models or guide users to other purchasing options.

However, regulators say those changes are insufficient, according to reports. Furthermore, they point out that Google's updated policy still falls short, especially when compared with Apple, which in June reworked its own store policies after receiving a €500 million fine (which is about £430 million.)

So if Google fails to implement this and more meaningful changes, the European Commission could move to impose fines as early as the first quarter of next year.

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How Much Fine Will Google Have to Pay?

The potential penalty for Google's non-compliance is enormous. Because under the rules of the regulatory framework known as the Digital Markets Act (DMA), fines for a tech giant like Google reportedly can reach up to 10% of the company's global annual revenue.

So for Google, whose parent company recorded revenues in the hundreds of billions in recent years, this could mean a potentially enormous fine. Moreover, beyond the immediate financial impact, such a sanction would also mean a massive change in how the EU expects major tech platforms to operate.

Furthermore, from a broader perspective, this enforcement is part of a wider push by EU regulators to ensure fair competition in digital markets. Google is already facing other investigations, including on how it handles search service favouritism, its use of online content in AI tools like the AI Overview, and its overall ads and tech practices.

Google, though, has reportedly warned that pushing through further changes might compromise Android's open design, damaging user security and exposing users to risks like malware or fraud. The company says that, unlike iOS, Android was built to remain open by design. So it seems to imply that charges like excessive fees are necessary to keep investment flowing into the Play ecosystem.

But if regulators press ahead, Google may be forced to choose between altering its business model completely or facing a potentially massive fine. However, for app developers and European consumers, that could mean more flexibility and pricing transparency. Yet for Google, it may become one of the most financially damaging regulatory challenges in its history.