Hefty penalty: EU imposes a fine of 890 million euros on Google

The European Union has imposed a fine of 890 million euros on Google. The reason for this is violations of the Digital Markets Act. The group is said to have preferred its own services and disadvantaged developers of third-party apps.

EU punishes Google for DMA violations

What had already been announced has now happened. The European Union has imposed a fine of 890 million euros on Google. The reason for the sanction is violations of the Digital Markets Act (DMA). According to investigators, the technology group from the United States exploited its dominant market position. The company placed its own offers to the detriment of competitors, who were systematically disadvantaged as a result, and did not disclose the data from its search engine.

The punishment is divided into two procedures. An amount of 460 million euros goes to preferring your own services within the search. The group made its own results for areas such as shopping, hotels, transport and sports much more visible than those of competitors. The responsible competition authorities see this as a violation of the obligation to create fair conditions on the market.

Strict rules for app stores

Another 430 million euros are due due to restrictions in the Google Play Store. As the European Commission reports that the company has used so-called anti-steering practices. Developers were therefore prevented from pointing users to cheaper purchasing options outside of the in-house store. Such restrictions are prohibited under the new digital markets framework. Since 2023, Google has officially been the gatekeeper for central services such as Android, Chrome and the search engine. The current procedure follows previous studies. Apple was also recently asked to pay for similar business practices. The Digital Markets Act aims to ensure that small and large companies have equal opportunities.

In the event of repeated violations, the commission can in theory even order a break-up of companies. Alphabet, Google’s parent company, has already had to pay high fines in Europe in the past. In the years 2017 to 2019, the fines imposed for violations of European antitrust law totaled over eight billion euros. At that time, the authorities were focusing on their own price comparison service, the Android operating system and the AdSense advertising service.

Deadline for technical adjustments

The group now has 60 days to implement the required changes to its offering. If Google misses the deadline, it could face further fines of up to five percent of daily global sales. Company representatives warn of a deterioration in the user experience. The company is already testing new search layouts and has made initial adjustments to its own developer guidelines.