Google has been hit with a significant fine of €890 million by the European Union for violations related to its search engine and app store practices under the Digital Markets Act (DMA). The hefty penalty comes in response to Google’s preferential treatment of its own services and restrictions on app developers.
The European Commission has divided the fine into two parts. A €460 million penalty addresses Google’s practice of giving its services, such as shopping and hotel listings, an unfair advantage by placing them prominently in search results over competitors. An additional €430 million fine is for blocking app developers from guiding users to more affordable offers available on their websites or through alternative app stores.
In compliance with the ruling, Google is required to ensure fair treatment of third-party services in its search results. Moreover, the company must allow app developers the freedom to promote deals outside the confines of the Google Play Store.
EU officials have noted Google’s initial steps towards aligning with the Digital Markets Act, highlighting the company’s efforts to test changes in its search results as a meaningful move towards compliance. This decision is anticipated to boost competition within digital markets and enhance consumer choice across the European Union.