EU Hits Google with $1 Billion Fine over Its Play App Store and Search

The European Union has levied a significant fine of 890 million euros ($1 billion) against Google, citing violations of digital antitrust regulations concerning its Play app store and search engine.

The bloc's executive branch, the European Commission, stated that Google corralled consumers towards its own services and apps, to the detriment of competitors. This action marks the latest major regulatory crackdown by Brussels on Big Tech companies.

This development follows Google's recent loss of an appeal against a separate $4.5 billion antitrust fine imposed for anti-competitive practices related to its mobile Android operating system, which allegedly throttled competition and limited consumer choice. The Associated Press reported on this previous ruling.

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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. And European consumers have a right to be told by app developers where to sign up to the best offers, even when the app store owner does not get a cut.

Teresa Ribera, the European Commission's Executive Vice President for Clean, Just and Competitive Transition, emphasized the principle that "The best products should succeed because they’re better, not because they’re owned by the company running the search engine." She added that European consumers have a right to be informed about the best offers available, even if the app store owner doesn't receive a share.

Google's President of Global Affairs, Kent Walker, criticized the fine, calling it "product degradation driven by a small group of self-serving complainants" that will harm European businesses and consumers. He argued that the EU's Digital Markets Act forces Google to remove features that Europeans value, such as instant pricing and availability for travel and restaurants, and to dismantle safety protections on Google Play.

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Google’s President of Global Affairs Kent Walker blasted the fine as “product degradation driven by a small group of self-serving complainants” that will negatively impact European businesses and consumers. He said that the EU’s Digital Markets Act forces Google “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.”