European Commission Fines Google €890 Million Over Google Search and Google Play DMA Violations

Reviewed by Irfan Ahmad. The European Commission on July 23 fined Google €890 million (about $1. 01 billion) after finding the company failed to comply with two obligations under the European Union’s Digital Markets Act (DMA). The penalties include €460 million over Google’s Search practices and €430 million over its Google Play practices. The Commission found that Google gave its own services, including shopping, hotels, transport and sports, more prominent placement in Google Search than comparable third-party services. Under the DMA, gatekeepers must not treat their own services more favourably in rankings than third-party services and must apply transparent, fair and non-discriminatory ranking conditions. The Commission also found that Google restricted app developers from informing users about alternative offers and directing them to other purchase channels outside Google Play. It also concluded that Google’s steering-related fees and the period for charging those fees exceeded what it considers compliant with the DMA. The Commission ordered Google to end both areas of non-compliance within 60 days. Otherwise, the company could face periodic penalty payments of up to 5% of its total worldwide turnover. Executive Vice-President for Clean, Just and Competitive Transition, Teresa Ribera said the Commission had taken “decisive yet balanced enforcement action.” She added that “The best products should succeed because they’re better, not because they’re owned by the company running the search engine.” The Commission noted that, after what it described as a constructive dialogue, Google has proposed and started testing changes to how it presents its own services on Google Search for free services such as shopping, hotels and flights. It also noted that Google has proposed and started testing changes to how it presents shopping ads and content related services, such as sports. The Commission also noted that Google has rolled out changes related to Google’s steering terms, which it said constitute good progress toward compliance and will also be assessed in light of the Commission’s cease and desist order. It also took note of Google’s proposals on how it plans to apply the principles of the decision to AI Overviews and AI Mode, saying dialogue on those proposals will continue following the Commission’s decision. Google may appeal the decisions. Image: DIW Read next: • Google’s AI Search Has Struggled With One Religious Question for Years • Shift Browser Report Shows Gen Z’s Relationship With AI Is “Complicated” • Google Says Gemini App Reaches 950 Million Monthly Active Users as AI Mode Surpasses 1 Billion

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