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EU Fines Google €890 Million Under Digital Markets Act

Jarida Report

Alphabet’s Google was fined a total of €890 million ($1 billion) by the European Commission on Thursday for violating European Union rules designed to curb the market power of major technology companies.

The penalties mark Google’s first fines under the Digital Markets Act (DMA), although EU regulators said the company has made encouraging progress in bringing its business practices into compliance with the landmark legislation.

The European Commission imposed a €460 million fine after finding that Google gave preferential treatment to its own services, including shopping, hotel, transport and sports platforms, within its search results.

A second fine of €430 million was issued over restrictions in the Google Play Store, with regulators saying the company prevented app developers from directing users free of charge to lower-priced offers available through competing app stores or websites.

The latest penalties bring Google’s total fines imposed by the European Union for anti-competitive practices to €10.38 billion over nearly two decades.

“Our duty and obligation is to comply with the laws, so that our laws are fully respected,” EU Competition Commissioner Teresa Ribera told reporters when asked about criticism from the United States.

EU Tech Commissioner Henna Virkkunen said the Digital Markets Act is intended to ensure fair competition in digital markets.

“The DMA is to make sure we have a fair and level playing field. With these decisions we want to make sure there is competition,” she said.

The fines underscore the European Union’s determination to enforce its digital competition rules despite criticism from Washington and concerns over possible retaliatory trade measures.

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