What you need to know
- The European Commission has imposed a total of 890 million euros ($1 billion) in fines against Google for anti-competitive practices under the first Digital Markets Act.
- Search took the biggest hit, with Google fined €460 million for allegedly favoring its services over rival platforms.
- Google Play was not spared either, as the EU fined the company €430 million for restricting developers from managing users to cheaper payment options outside the Play Store.
Google’s battles with European regulators are far from over. After recently losing its battle with the EU A record €4.1 billion antitrust fine for Android’s market dominanceThe European Commission has now issued its first fine against the company under the Digital Markets Act (DMA).
AB announced Google fined the company 890 million euros (about 1 billion dollars). Digital Markets Act (DMA) by giving its services an unfair advantage in Search and limiting how Android developers can reach customers outside of the Play Store.
Fines are divided into two parts. Google has been fined €460 million for prioritizing its products, including Shopping, Hotels, Transport and Sports results, over competing services on Google Search. EU regulators said Google’s services consistently received better positioning and richer visual treatment than rival services, making it harder for competitors to be seen.
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A second fine of 430 million euros was imposed on Google Play. The commission said Google prevented developers from freely redirecting users to cheaper offers or alternative payment methods outside the Play Store. Under the DMA, developers should be able to promote these options without facing restrictive conditions, and Google’s handling fees are also higher than what regulators consider acceptable.
These are the first fines Google has accepted under the DMAEurope’s landmark law aims to reign in the power of the biggest “gatekeepers” in the tech industry. The ruling also orders Google to change its Search ranking practices and Play Store policies to comply with the law. Failure to take corrective action within 60 days may result in additional penalties based on the company’s global revenue.
Android Central has reached out to Google for a statement, and we’ll update this article when we hear back. In any case, the tech giant is expected to appeal the decision, but will continue to discuss possible compliance measures with regulators.
Android Central’s Take
I don’t think most people will lose sleep over Google getting another billion dollar fine, but if these decisions push Google to give developers more freedom and make Search a little fairer, it’s ultimately a win for users. At the same time, I can’t help but see a pattern here: Google changes its products, regulators object, Google appeals, and the process repeats. For years, you’d think we’d be talking about permanent fixes after billion-euro penalties instead of another chapter in the same regulatory saga.
