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EU Fines Google €890M for Big Tech Rule Violations
23 Jul
Summary
- Google received €890 million in EU fines for flouting Digital Markets Act rules.
- One fine targeted Google's favoring of its services in search results.
- A second fine addressed restrictions on Google Play's app store practices.
Alphabet's Google has been fined a total of €890 million (approximately A$1.45 billion) by the European Commission for breaching European Union rules designed to regulate Big Tech. The commission issued two separate fines: one of €460 million for favoring Google's own services in search results across shopping, hotels, transport, and sports, and another of €430 million targeting restrictions on its Google Play app store.
These fines are the first under the Digital Markets Act (DMA) for Google, marking the fifth and sixth overall penalties for anti-competitive practices, bringing the total penalties to over €10.38 billion. Despite criticism and potential legal challenges from Google, the EU regulators acknowledged constructive dialogue and significant progress in the company's compliance efforts, suggesting daily penalties for non-compliance are unlikely.
Google stated that compliance would require dismantling features and safety protections, impacting European consumers and businesses. The commission, however, is assessing Google's proposed changes to its search results presentation and app store steering terms, with ongoing talks regarding AI-generated summaries. These actions underscore the EU's commitment to ensuring a fair and competitive digital market.
