Google fined €890m by EU for favouring its own apps over rivals
Google has been hit with an €890 million (£759 million) fine by the European Union for allegedly abusing its market dominance by giving preferential treatment to its own apps and services over those of competitors.
The penalty marks the first significant enforcement action against the company under the EU’s Digital Markets Act (DMA), legislation designed to limit the influence of major technology firms and promote fair competition.
According to the European Commission, Google’s conduct reduced consumer choice and unfairly favoured its own products and services at the expense of rival businesses.
Google, however, criticised the ruling, arguing that complying with the EU’s requirements would negatively affect services relied on by millions of users across Europe.
Kent Walker, Google’s President of Global Affairs, said the company would have to remove popular real-time Search features, including instant pricing and direct booking information for hotels, flights and restaurants, while also weakening safety protections on the Google Play Store.
He maintained that the measures do not promote fair competition.
EU regulators rejected Google’s position, insisting the rules are necessary to prevent dominant digital platforms from using their market power to disadvantage competitors.
The total fine consists of two separate penalties under the DMA. The Commission imposed a €460 million fine after concluding that Google gave its own flight and hotel booking services preferential placement in search results.
A further €430 million penalty was issued over Google Play Store policies, with regulators finding that the company prevented users from easily accessing cheaper offers available outside its app marketplace.
The latest sanctions add to Google’s long-running disputes with European regulators, who have previously imposed multi-billion-euro fines on the company in other competition-related cases.
EU Competition Commissioner Teresa Ribera said businesses should succeed based on the quality of their products rather than control of key digital platforms.
Similarly, EU technology chief Henna Virkkunen said the decision is intended to encourage greater competition and create more opportunities for innovation by other companies.
Google has been given 60 days to comply with the Commission’s decision or challenge it through the courts.
Source: BBC
About The Author
