EU Hits Google With €890 Million Fine Over Search and Play Store Practices
- By Tahani Elghazaly
- Published
The European Commission has fined Google a total of €890 million, equivalent to approximately US$1 billion, after finding that the technology giant violated the European Union’s Digital Markets Act by favouring its own services and restricting competition through the Google Play Store.
The penalty consists of two separate fines. The first, worth €460 million, relates to Google Search, where European regulators concluded that the company gave preferential treatment to its own services in areas including shopping, hotels, transportation and sports.
According to the Commission, Google displayed its services more prominently and attractively than competing platforms, preventing rivals from competing on equal terms and limiting the choices available to European users.
A second fine of €430 million was imposed over restrictions affecting developers that distribute their applications through Google Play. Regulators said Google prevented businesses from freely directing consumers toward alternative purchasing channels that could offer lower prices outside its app store.
The Commission found that the restrictions made it more difficult for developers to communicate directly with customers or encourage them to complete purchases through their own websites and other platforms.
The European Union’s Digital Markets Act places special obligations on major technology companies designated as “gatekeepers.” These companies must not unfairly promote their own products over competing services and must allow businesses to communicate with customers about alternative purchasing options.
Google has been given 60 days to comply with the decisions by providing fair and non-discriminatory treatment to competing services in its search results and removing restrictions that prevent app developers from directing customers to alternative payment channels.
Google criticised the decision and argued that the changes required by European regulators could harm consumers and businesses by reducing useful features related to hotels, flights, restaurants and other search services.
The company also warned that removing some Google Play protections could expose users to greater security risks. Google indicated that it may challenge the Commission’s findings through the European courts.
Despite the financial penalties, European regulators said Google had made significant progress toward compliance and was continuing constructive discussions with the Commission.
The company has begun testing changes to the way shopping, hotel, travel and sports services appear in search results and has proposed adjustments to its Google Play policies. Regulators said these measures could help Google avoid additional penalties if they fully address the violations.
The €890 million penalty is the first financial fine imposed on Google under the Digital Markets Act and represents one of the European Union’s most significant enforcement actions since the landmark digital competition rules took effect.
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Tahani Elghazaly5567 Posts
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