EU: Google hit with a massive fine of 890 million for breaching the Digital Markets Act
The European Commission has fined Google for anti-competitive practices relating to its search engine and app store, giving the company 60 days to comply or face further penalties
From our correspondent Beda Romano
Aggiungi Il Sole 24 Oreai preferiti su Google
BRUSSELS – The row between the European Union and the major digital multinationals continues unabated. Following the recent cases involving Temu and Meta, the European Commission announced today, Thursday 23 July, two fines, this time against Google, totalling €890 million. In both cases, the decision concerns breaches of the Digital Markets Act. The Californian company has 60 days to comply with the European regulation. Otherwise, it will be subject to periodic fines.
The two cases under scrutiny
According to the DMA, Google is considered a gatekeeper, that is, a company large enough to have specific responsibilities in ensuring compliance with European regulations. The first of the two cases concerns Google Search. The search engine is accused by the European Commission of promoting its own services more prominently than those of its competitors when displaying internet search results. The fine imposed by Brussels amounts to €460 million.
The second issue is more complex, and concerns Google Play. The rules of the DMA stipulate that app developers may inform users of the existence of better and cheaper alternatives on the market, including on other websites. Google has failed to comply with this obligation, explains the European Commission in its decision. It should be noted that selling an app via Google Play often involves paying a commission to Google.
In this case, the fine imposed by Brussels amounts to €430 million, although the European Commission has acknowledged that, during its discussions with the US company, the latter proposed improvements and changes to Google Play. ‘The European Commission,’ reads the press release published today, ‘will monitor the implementation of these solutions, which represent substantial progress towards compliance.’
Google’s response
Google’s president, Kent Walker, made a very harsh comment: ‘The implementation of the DMA continues to harm everyday products. To comply, we are forced to remove real-time search features much loved by Europeans – such as instant prices and direct availability for hotels, flights and restaurants (...) This is not fair competition; it is a deterioration in the product driven by a small group of complainants with vested interests, at the expense of European businesses and consumers.”
