The European Commission said it has fined Alphabet’s Google a total of €890 million in two decisions finding non-compliance by the US tech giant with the Digital Markets Act (DMA).
The fines are for allegedly “self-preferencing its own services on Google Search, and for putting in place restrictions on businesses to direct consumers to alternative, often cheaper, purchase channels on Google Play (steering).”
Respectively, the Commission issued Google a fine of €460 million and a fine of €430 million.
“Under the DMA, gatekeepers must not treat their own services more favourably in ranking than third-party services,” said the Commission.
“They have to apply transparent, fair and non-discriminatory conditions to such ranking.
“The Commission found that Google gives preferential treatment to its own services, including shopping, hotels, transport and sports results, over those of third parties in Google Search, thereby breaching its obligations under the DMA.
“Google displays its own services more prominently in search results, including at the top of the search results page or by using enhanced visuals and filters, while similar third-party services do not have the same prominence …
“Under the DMA, app developers that distribute their apps via Google Play should be able to inform customers – free of charge – of alternative, often cheaper, offers, and to direct them to those offers to make purchases, for example on websites or alternative app stores.
“The Commission found that Google failed to comply with that obligation.
“In particular, Google prevents app developers from freely communicating and promoting offers and concluding contracts with users in distribution channels of their choice, including third-party app stores.
“While Google can receive a fee for facilitating the initial acquisition of a new customer by an app developer via Google Play, the level of the steering-related fees charged by Google and the length of the charging period for these fees went beyond what is considered compliant with the DMA.”
As part of the two decisions, the Commission has ordered Google to bring the non-compliance to an end.
In particular, Google must implement measures to:
Treat third-party services that feature on Google’s search results in a fair and non-discriminatory manner by reference to its own services
Allow app developers distributing their apps via Google Play Store, both technically and contractually, to freely communicate, promote offers and conclude contracts with users not only within but also outside the Google Play app store
Google is required to comply with the Commission’s decisions within 60 days, otherwise it risks periodic penalty payments of up to 5% of its total worldwide turnover.
Google criticised the Commission’s findings and said it might take it to court.
“To comply, we are having to strip away real-time Search features Europeans love – like instant pricing and direct availability for hotels, flights, and restaurants – and dismantle safety protections on Google Play …” Google President of Global Affairs Kent Walker told Reuters.
“This isn’t fair competition; it’s product degradation driven by a small group of self-serving complainants, with European businesses and consumers taking the hit. Regulation should improve products, not make them worse.”