What you need to know
- The European Commission issued its first-ever Digital Markets Act fines against Google, totaling €890 million ($1 billion) for anticompetitive practices.
- Search took the biggest hit, with Google fined €460 million for allegedly giving its own services preferential placement over rival platforms.
- Google Play wasn’t spared either, as the EU fined the company €430 million for restricting developers from steering users to cheaper payment options outside the Play Store.
Google’s battles with European regulators are far from over. After recently losing its fight against the EU’s record €4.1 billion antitrust fine over Android’s market dominance, the European Commission has now issued its first fines against the company under the Digital Markets Act (DMA).
The EU announced that it has fined the company €890 million (around $1 billion), saying that Google broke the Digital Markets Act (DMA) by giving its own services an unfair advantage in Search, and limiting how Android developers can reach customers outside the Play Store.
The penalties are divided into two parts. Google was fined €460 million for allegedly favoring its products, including Shopping, Hotels, Transport, and Sports results, over rival services in Google Search. EU regulators said that Google’s services were consistently given better placement and richer visual treatment than rival services, making it harder for competitors to get visibility.
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The second fine, worth €430 million, was imposed on Google Play. The Commission said Google blocked developers from directing users freely to cheaper offers or alternative payment methods outside the Play Store. Under the DMA, developers should be able to promote those options without facing restrictive conditions, and Google’s steering-related fees were also found to be higher than what regulators consider acceptable.
These are the first fines that Google has received under the DMA, Europe’s landmark law aimed at reigning in the power of the biggest “gatekeepers” in the tech industry. The ruling also orders Google to change its Search ranking practices and its Play Store policy to comply with the law. Failure to take corrective action within 60 days can result in additional penalties based on the company’s global revenue.
Android Central has contacted Google for a statement and will update this article when we hear back. Anyway, the tech giant is expected to appeal the decision but will continue discussing possible compliance measures with regulators.
Android Central’s Take
I don’t think most people will lose sleep over Google getting another billion dollar fine, but if these rulings push Google to give developers more freedom and make Search a little fairer, that’s ultimately a win for users. At the same time, I can’t help but notice the pattern here: Google changes its products, regulators object, Google appeals, and the process repeats itself. For years, you’d think we’d be talking about lasting fixes after billion-euro penalties instead of another chapter in the same regulatory saga.
