Huge fine for Google
Google has been fined a total of 890 million euros by the European Commission for breaches of the Digital Markets Act (DMA). According to the European regulator, the company gave its own services preferential treatment in Google Search and offered app developers too little freedom within the Google Play Store.
The total fine consists of two separate amounts. Google must pay €460 million for the way its own services are displayed in search results. In addition, there is a fine of €430 million because developers are unable to adequately inform users about alternative app stores or cheaper payment options outside Google Play.
The European Commission argues that, in Search, Google presents its own services more prominently than comparable services from other companies. This applies, amongst other things, to searches relating to products, hotels, flights, transport and sports news.
Under the DMA, large technology companies designated by the EU as ‘gatekeepers’ are not permitted to give preferential treatment to their own services. The aim of this legislation is to give competitors a fairer chance and to prevent large platforms from abusing their dominant position.
Criticism of the Google Play Store too
The second infringement centres on the Play Store. According to the DMA, developers must be able to inform users about alternative ways to purchase apps or subscriptions, for example via their own website or another app store. The European Commission believes that Google still restricts this too much. As a result, according to the regulator, users have less insight into potentially cheaper alternatives outside the Play Store.
Google has 60 days
In addition to the financial penalty, Google must adapt its services. The company has sixty days to do so. If it fails to do so, the European Commission may impose further fines. Google has already put forward proposals to bring Search and the Play Store more into line with the DMA. The Commission describes these plans as a step in the right direction, but believes they do not go far enough.
The tech company disagrees with the decision. According to Google, the rules could actually lead to a poorer user experience, and European businesses and consumers would suffer as a result. The company is still reviewing the ruling and will decide later whether to appeal. Google has issued the following statement regarding the fine:
“This implementation of the DMA continues to break everyday products. To comply, we are having to strip away real-time Search features Europeans love – such as instant pricing and direct availability for hotels, flights and restaurants – and dismantle safety protections on Google Play. This isn’t fair competition; it’s product degradation driven by a small group of self-serving complainants, with European businesses and consumers bearing the brunt. Regulation should improve products, not make them worse.” – Kent Walker, President of Global Affairs, Google & Alphabet
Not the first fine
The Digital Markets Act has been in force since March 2024 and is intended to limit the power of large technology companies. Apple and Meta have also previously been fined for breaches of this law.
Moreover, this is not Google’s first major European penalty. Earlier this month, the company also lost an appeal against a previous fine of 4.1 billion euros, which was imposed for anti-competitive practices relating to Android.
