EU warns Google of possible major fine over Play Store rules

Google faces the prospect of a significant European Union fine early next year, with regulators warning that the company has not done enough to bring its Google Play store into compliance with the bloc’s competition rules, according to people familiar with the discussions.

The European Commission has been examining Google Play since March, focusing on restrictions that prevent app developers from steering users toward alternative purchasing channels that may offer lower prices. Regulators are also scrutinising Google’s service fee for acquiring new customers through the Play Store, which they believe exceeds what is reasonable.

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Despite adjustments announced in August, aimed at giving developers more flexibility to guide users to external payment options and select different fee structures, EU officials say the changes do not meet the standards expected under the Digital Markets Act (DMA). Sources noted that Apple’s recent overhaul of its App Store, following a €500 million penalty earlier this year, is being used as a benchmark for compliance. Apple’s revised rules and fees are expected to be declared in line with the DMA.

Google may still propose additional modifications before any penalty is imposed, though people close to the process say a decision is likely in the first quarter of next year. However, the exact timing remains fluid. The company said it continues to cooperate with the Commission but warned that further mandated changes could increase security risks for Android users, citing concerns around malware, scams and data theft.

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The investigation comes amid growing transatlantic friction, with U.S. officials accusing the EU of disproportionately targeting American tech firms, a claim European authorities reject. Under the DMA, fines can reach up to 10% of a company’s global annual turnover. Beyond Google Play, the Commission is also probing Google’s alleged preferential treatment of its own services in search results, along with the way it uses online content to power its AI tools and how it enforces spam policies.