The European Union has fined Google €890 million ($1 billion) for breaking its new digital competition rules. This is the first major punishment under the Digital Markets Act (DMA). The law aims to stop big tech companies from abusing their market power. The decision also comes as tensions grow between Europe and the United States over the regulation of technology companies.
According to the European Commission, Google gave its own services more attention than rival platforms. Hotel bookings, shopping results, and transport services appeared higher in Google Search than competitors. The commission also said Google blocked app developers from directing users to cheaper offers outside the Google Play Store. Henna Virkkunen said,
“We found that Google harms businesses offering similar services, such as shopping or sports, by not granting them the same level of prominence on Google Search.”
She also added,
“We also found that Google has restricted app developers from offering cheaper offers to customers in the Google Play app store.”
As a result, Google received two separate fines. The company must now make the required changes within 60 days. Otherwise, it could face even tougher penalties. However, Google disagrees with the decision. Kent Walker, the company’s global affairs president, said,
“To comply, we are having to strip away real-time Search features Europeans love.”
He added,
“This isn’t fair competition; it’s product degradation driven by a small group of self-serving complainants, with European businesses and consumers taking the hit.”
Meanwhile, the European Commission says it will continue working with Google until the company fully follows the law. Teresa Ribera defended the ruling, saying,
“The best products should succeed because they’re better, not because they’re owned by the company running the search engine.”
She also stressed that users deserve access to the best deals, even if Google earns nothing from those purchases. For now, all eyes are on Google as it decides its next move.
