Google slapped with $1 billion fine under landmark EU digital law
A Google logo is displayed on the smartphone screen, and the European flag is displayed on the computer screen.
Nikolas Kokovlis | Nurfoto | Getty Images
European regulators impose fines Google A compensation of 890 million euros ($1 billion) was paid for allegedly giving preferential treatment to the company’s own services.
This penalty is Google’s first under the European Union’s sweeping Digital Markets Act (DMA), which aims to scrutinize Big Tech’s operating practices in Europe.
Google could not immediately be reached for comment when contacted by CNBC.
The European Commission, the EU’s executive arm, said it found Google gave preferential treatment to its own services, such as shopping and hotels, over third-party services in search.
The commission said Google displayed its own services “more prominently in search results” but that similar third parties “did not have the same prominence”.
The US tech giant also violates anti-routing measures. Under the regulation, app developers who distribute their products through Google Play must be able to inform customers about alternative, sometimes cheaper, offers. These developers should be able to direct customers to these offers even if they are on external websites outside of the Google Play Store.
The Commission said Google failed to comply with this obligation.
“In particular, Google prevents app developers from freely communicating, submitting offers, and signing contracts with users in distribution channels of their choosing, including third-party app stores,” the commission said.
The regulator said it had instructed Google to treat third-party services “in a fair and non-discriminatory manner” in its search results. He also said Google should allow app developers who distribute their apps through the Google Play Store to “make offers and enter into contracts with users not only inside the Google Play app store but also outside of it.”
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