Google fined €890 million by the EU, company threatens to remove features
The European Commission has concluded two proceedings against Google, finding violations of the Digital Markets Act (DMA) and imposing total fines of €890 million. The decisions concern two distinct aspects: the preferential treatment given to the company's services within Google Search and the restrictions imposed on developers of applications distributed through Google Play.
Specifically, Brussels imposed a fine of €460 million for "self-preferencing" practices in the search engine and a second sanction of €430 million for limitations that, according to the European executive, prevent developers from directing users to alternative channels, often cheaper, for purchasing digital content and services.
According to the Commission, Google systematically favored its own services within search results, such as those dedicated to shopping, hotels, transport, and sports, ensuring them a privileged position through placement at the top of the page, more prominent graphics, and dedicated filters. Competing services, while offering similar functionalities, did not receive the same treatment, in violation of the DMA, which requires so-called "gatekeepers" to apply transparent, fair, and non-discriminatory criteria.
The second complaint concerns Google Play. The investigation established that developers were not allowed to communicate freely to users about the availability of alternative offers or to conclude contracts outside of Google's marketplace. While recognizing the company's right to receive a commission for the initial acquisition of new customers through the store, Brussels believes that the amount and duration of the commissions exceed what is permitted by the Digital Markets Act.
With the two decisions made, the Commission has ordered Google to cease practices deemed non-compliant. The company must change the workings of Google Search so that third-party services receive treatment equivalent to that reserved for proprietary services and allow Google Play developers to promote offers, communicate with users, and conclude contracts even outside of the store ecosystem, both technically and contractually.
Google now has 60 days to comply with European directives. Failing that, it risks further periodic fines that could reach up to 5% of the company's global revenue. Mountain View also retains the option to appeal against the decisions.
The Commission specified that, during the dialogue with the company, Google has already begun testing some changes to how free services like shopping, hotels, and flights are presented in search results, as well as starting experiments related to commercial ads, sports content, and new features based on artificial intelligence, including AI Overview and AI Mode. Brussels will continue to monitor these interventions to verify their actual compliance with the legislation.
In commenting on the measure, European Commission Executive Vice-President Teresa Ribera stated that Google "has not effectively complied with the Digital Markets Act" and that the best products must prevail "for their quality and not because they belong to the company that runs the search engine." She also emphasized that European consumers should be able to know about the best offers provided by developers, even when these are purchased outside the app store.
On the same line, Executive Vice-President Henna Virkkunen stated that the decisions confirm the European Union's intention to firmly enforce the DMA to ensure competition and innovation. Virkkunen reiterated that Google has penalized competing companies in search services and limited the ability for developers to offer better deals to Google Play users.
The measure has been favorably welcomed by Codacons, which described the fine as particularly significant. The association has long argued that Google's dominant position ultimately harms not only competitors but also consumers, distorting competition in critical markets such as search engines and app stores. According to Codacons, the European decision confirms the alleged abuses and forces the company to concretely change its behaviors.
Google's response, however, was highly critical. The company's Global Affairs President, Kent Walker, argued that the implementation of the Digital Markets Act is compromising the quality of the services used daily by European users. According to Walker, Google will be forced to remove certain features from Search, including real-time display of prices and availability for hotels, flights, and restaurants, as well as reducing some security protections built into Google Play. In his view, this would not be a fair application of competition but rather a deterioration of products imposed by regulation.
The European Commission's reply was swift. The spokesperson for the community executive, Thomas Regnier, rejected the accusations, asserting that the issue does not lie with European rules but with the existence of dominant platforms that hinder innovation and limit the ability for European businesses to compete on equal footing.