The European Union has imposed a $1 billion fine on Google for breaching rules aimed at ensuring fair competition in digital markets, marking the first time the technology giant has been sanctioned under the bloc’s landmark Digital Markets Act (DMA).
The European Commission, the executive arm of the EU, announced on Thursday that Google failed to comply with the Digital Markets Act by giving preferential treatment to its own services, including shopping and transport listings, over those of rival companies in Google Search.
The Commission also found that the company restricted app developers from directing customers to alternative purchasing options outside the Google Play Store, limiting their ability to offer lower prices.
As a result, the Commission imposed two separate fines on Google – $524.7 million for favouring its own services in search results and $490 million for anti-competitive practices involving the Google Play app store.
According to the Commission, the penalties reflect “the gravity and duration of Google’s non-compliance” with the Digital Markets Act, which was introduced to curb the market dominance of major technology companies and promote greater competition across digital platforms.
European Commissioner for Tech Sovereignty, Henna Virkkunen, said the investigation found that Google’s conduct disadvantaged competing businesses by failing to give them equal visibility on its search platform.
“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,” Virkkunen said in a statement.
She added that the Commission also established that Google had prevented app developers from informing customers about cheaper offers available outside the Google Play ecosystem, thereby restricting competition and consumer choice.
The ruling marks a significant milestone in the enforcement of the Digital Markets Act, underscoring the European Union’s determination to rein in the influence of dominant digital platforms and ensure a level playing field for competitors.
