EU Slaps Google With €890m Fine Over Anti-Competitive Practices

The European Union has fined US technology giant Google €890 million (about $1.015 billion) for breaching the bloc’s digital competition rules, accusing the company of unfairly favouring its own services over rivals.

The European Commission announced that its investigation found Google gave preferential treatment to its search engine and Google Play app store, disadvantaging competing businesses and limiting consumer choice.

European Commissioner for Digital Affairs, Henna Virkkunen, said the company used its dominant position to give its own services greater visibility than competitors.

“We found that Google harms businesses offering similar services, such as shopping or sports, by not granting them the same level of prominence on Google Search,” Virkkunen said.

She also accused the tech giant of restricting app developers from directing users to cheaper alternatives outside the Google Play Store.

“We also found that Google has restricted app developers from offering cheaper offers to customers in the Google Play app store,” she added.

The Commission warned that Google could face additional financial penalties if it fails to comply with the EU’s Digital Markets Act (DMA) requirements.

European Competition Commissioner Teresa Ribera said the action was aimed at ensuring fair competition in the digital marketplace.

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

“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.”

Google strongly rejected the decision, with the company’s President of Global Affairs, Kent Walker, describing the sanctions as unjustified.

Walker argued that the ruling would negatively affect users across Europe.

“The penalty would 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,” he said.

The latest sanction marks another major regulatory action by the EU as it intensifies efforts to curb the market dominance of major global technology companies.

In 2018, the European Commission imposed a €4.3 billion fine on Google for abusing the dominance of its Android operating system by requiring smartphone manufacturers to pre-install Google Search and the Chrome browser. Google lost its appeal against that decision earlier this year.

The EU has also stepped up enforcement against other technology companies. Earlier this month, Chinese online retailer AliExpress was fined €550 million over alleged shortcomings in tackling illegal, unsafe and counterfeit products sold on its platform.

On July 10, the European Commission also warned Meta that it could face significant penalties unless it addresses concerns over the “addictive design” of Facebook and Instagram, which regulators say could harm users.