EU Fines Google €890 Million for Digital Markets Act Violations

Image credit: Abondance

BRUSSELS — The European Commission on Thursday fined Google €890 million ($955 million) for violating the Digital Markets Act (DMA) by favoring its own services and restricting app developers on Google Play.

The substantial penalty stemmed from Google’s anti-competitive practices, which included promoting its proprietary services in Google Search results over third-party alternatives and preventing app developers from informing users about cheaper offers outside of Google Play.

The European Commission ordered Google to immediately cease these practices, mandate non-discriminatory treatment for third-party services, and allow developers to communicate freely about external offers, according to a statement.

Google has 60 days to comply with the directive or face additional penalties, which could amount to up to 5 percent of its global turnover, the Commission said. The company retains the right to appeal the decisions.

The investigation into Google’s conduct began on March 25, 2024, following its designation as a “gatekeeper” under the DMA in September 2023.

Teresa Ribera, a member of the European Commission, emphasized the importance of fair competition in the digital market. Henna Virkkunen, another Commission official, highlighted that the ruling aims to ensure a level playing field for all businesses operating within the EU.

Google said in a statement that it would review the Commission’s decision and consider its next steps, reiterating its commitment to complying with the DMA.

The DMA, which came into full effect in March 2024, aims to curb the market power of large online platforms, known as gatekeepers, by imposing strict rules on how they operate and interact with businesses and users.

This fine marks one of the most significant enforcement actions taken under the new regulation, underscoring the EU’s resolve to regulate major tech companies.

Source: Abondance