EU fines Google 890 mn euros, risking US fury

The European Union has imposed significant fines on Google, totaling 890 million euros ($1 billion), marking a potential escalation of trade tensions with the United States. The EU's European Commission levied two distinct penalties against the U.S. tech giant.

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After this decision, we want to make sure that there is more competition and also other companies are able to innovate.

The first fine, amounting to 460 million euros, addresses Google's illegal favoritism of its own services, such as Google Flights and Google Hotels, over those of its competitors within search results. A second fine of 430 million euros was issued because Google prevented app developers from presenting consumers with offers outside of the Google Play store, even if those offers were free of charge.

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Regulation should improve products, not make them worse.

EU tech chief Henna Virkkunen stated the decision aims to foster more competition and enable other companies to innovate. However, Google's Kent Walker criticized the EU's actions, arguing that regulation should improve products, not worsen them, and accused the EU of dismantling safety protections on Google Play. The U.S. Trade Representative's office echoed these concerns, warning that the fines undermine hopes for smoother trade ties and pose a risk to transatlantic stability.

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pose a real risk to the continuation of transatlantic stability with respect to trade.

These penalties are the largest yet against a single company under the EU's Digital Markets Act (DMA), a key piece of legislation designed to curb the power of Big Tech and ensure fair competition. The EU has previously fined Meta and Apple under similar rules. The Commission has warned that Google could face further "periodic penalty payments" if it fails to comply within 60 days.

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The best products should succeed because they’re better, not because they’re owned by the company running the search engine.