Ryan Haines / Android Authority
TL;DR The European Commission has fined Google a combined $1 billion over violations related to the Google Play Store and Search.
Google must comply within 60 days or risk shelling out periodic penalty payments of up to 5% of its global revenues.
The Commission said Google can appeal this ruling, while also acknowledging steps the company has taken to mitigate some of these violations.
Europe’s Digital Markets Act (DMA) came into effect a couple of years ago to curb the dominance of major tech corporations like Google, Amazon, Apple, and Meta. The legislation is designed to ensure a level playing field for all players in the market regardless of their size. It didn’t take long for the European Commission to announce investigations into Google, along with other big tech corporations, for non-compliance. The investigation may now have reached its conclusion, as the regulator has just slapped a massive fine on the search giant.
In a statement today, the European Commission said it was fining Google €890 million (~$1 billion) over two separate violations related to Search (€460 million) and the Play Store (€430 million).
For Google Search, the regulator found that the company gives “preferential treatment” to its own services, including in shopping, hotels, travel, and sports results, over third-party services that offer a similar product.
The Commission also points to Google offering “enhanced visuals and filters” and a prominent spot at the top of the results page for its own services, giving little to no visibility to other providers.
For some background on the Play Store violations, Google is compelled under the DMA to allow app developers to market their products or promotions outside the Play Store, such as in a third-party app store or website. The Commission found that not only does Google restrict app developers from using alternative means to market or sell their products, but the company also makes it financially difficult for developers through exorbitant fees for steering users away from the Play Store.
As for what comes next, the regulator has given Google 60 days to comply with the decision, or risk facing “periodic penalty payments” of up to 5% of the company’s global revenues. Despite these stern words, the European Commission notes that Google has continued to engage with the regulators, and is also actively testing changes to Google Search.
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