Google Fined 890 Million Euros by European Commission for Favoring Own Services

The European Commission has imposed a hefty 890 million euro fine on Google for breaching online competition rules. The penalties stem from Google's alleged favoritism of its own services within Google Search and restrictions placed on app developers using Google Play.

Specifically, the Commission found that Google violated the Digital Markets Act (DMA) by giving preferential treatment to its own services, including those for shopping, hotels, and sports results, in its search rankings. These services were displayed in more advantageous positions, often at the top of the page or with special visual elements, overshadowing competing services.

Furthermore, Google was penalized for hindering app developers' ability to inform users about alternative, cheaper offers and to direct them to third-party websites or app stores for purchases. The Commission stated that while Google can charge a fee for facilitating new customer acquisition via Google Play, the fees and their duration exceeded what is considered compliant with the DMA.

As a result of these two decisions, the European Commission has mandated that Google must cease its non-compliant practices under the Digital Markets Act. This action follows a recent separate fine of 550 million euros imposed on AliExpress for failing to adequately address the sale of illegal and counterfeit products within the EU.